rod Posted March 1, 2011 Share Posted March 1, 2011 Hello, I would like to know when do I need to pay tax if I make some winnings at the stock market! I heard that u don't need to pay any tax of winnings if u just buy and sell standard stocks / shares! But what about funds or other kind of trades like bonds, future and so on - do I need to pay tax on it, if not, when do I need to do so - like dividends! Kind Regards, Rod Link to comment Share on other sites More sharing options...
pongo Posted March 1, 2011 Share Posted March 1, 2011 Are you talking about your UK or IOM tax declarations ? Link to comment Share on other sites More sharing options...
Tugger Posted March 1, 2011 Share Posted March 1, 2011 I think capital gains are not taxable unless you do so much buying and selling of shares that it counts as trading income (i.e. it is your job) Link to comment Share on other sites More sharing options...
rod Posted March 1, 2011 Author Share Posted March 1, 2011 Are you talking about your UK or IOM tax declarations ? sorry, I mean on the Isle of Man! Link to comment Share on other sites More sharing options...
pongo Posted March 1, 2011 Share Posted March 1, 2011 Maybe the rules have changed - but IIRC (under the last tory govt I think) then I think you will be liable for UK tax on dividends on any UK investments. It certainly used to be like that I think. If you had UK investments then you had to make a UK tax return I think. Depending on how your stuff is held. And it used to be the case IIRC that IOM then taxes you again. Link to comment Share on other sites More sharing options...
GD4ELI Posted March 1, 2011 Share Posted March 1, 2011 Hello, I would like to know when do I need to pay tax if I make some winnings at the stock market?! I heard that u don't need to pay any tax of winnings if u just buy and sell standard stocks / shares?! But what about funds or other kind of trades like bonds, future and so on - do I need to pay tax on it, if not, when do I need to do so - like dividends?! Kind Regards, Rod Dividend is income, goes in your tax return. Profit made by buying low and selling high is a capital gain and tax free for you as an Island resident *unless* it is you sole/main source of income - i.e. you sit at home playing the stock market instead of doing some real graft as a DOI employee or similar. You can always convert dividends into a captial (tax-free) gain if you prepare this from the beginning. Link to comment Share on other sites More sharing options...
rod Posted March 1, 2011 Author Share Posted March 1, 2011 oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds! funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ?? Link to comment Share on other sites More sharing options...
thesultanofsheight Posted March 1, 2011 Share Posted March 1, 2011 oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds! funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ?? You sound a bit thick so let me summarize the entire Manx tax system. IF YOU EARN MONEY BY INCOME OR DIVIDENDS YOU PAY INCOME TAX, IF YOU EARN MONEY BY CAPITAL GAINS YOU DON'T PAY INCOME TAX OR CAPITAL GAINS TAX Link to comment Share on other sites More sharing options...
GD4ELI Posted March 2, 2011 Share Posted March 2, 2011 oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds! funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ?? Winnings - you have to differentiate between interest you may receive (some funds will generate interest once or twice a year) and profit you make when you sell the funds. Interest is taxable as income tax (same as earnings), profit on selling is not taxable as there is no capital gains (profit) tax for island residents. As I mentioned earlier there are legal ways of avoiding interest and generating purely capital gains. And you are not thick, just a newcomer to this area of finance I guess Link to comment Share on other sites More sharing options...
jim Posted March 2, 2011 Share Posted March 2, 2011 oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds! funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ?? You sound a bit thick so let me summarize the entire Manx tax system. IF YOU EARN MONEY BY INCOME OR DIVIDENDS YOU PAY INCOME TAX, IF YOU EARN MONEY BY CAPITAL GAINS YOU DON'T PAY INCOME TAX OR CAPITAL GAINS TAX You sound like one of those people who when on holiday and can't speak the language just talks slower and increasingly louder to the obviously stupid foreigner. Link to comment Share on other sites More sharing options...
piebaps Posted March 2, 2011 Share Posted March 2, 2011 I would recommend talking to these people http://www.gov.im/treasury/incometax/contactform.gov Its a better way to get advice about the IOM Tax system than asking on a web forum, especially this one where the normal person to troll ratio is a little skewiff Link to comment Share on other sites More sharing options...
The Old Git Posted March 2, 2011 Share Posted March 2, 2011 I think the question has been answered correctly though. If you receive dividend income (ie get money without selling any shares) then it's taxable If it's a capital gain (ie get money from selling your shares) then it's not taxable. Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted March 2, 2011 Share Posted March 2, 2011 I would like to know when do I need to pay tax if I make some winnings at the stock market! Speak to this guy..... Link to comment Share on other sites More sharing options...
rod Posted March 6, 2011 Author Share Posted March 6, 2011 thanks a lot 2 everyone 4 the answers Link to comment Share on other sites More sharing options...
DevilledEgg Posted March 6, 2011 Share Posted March 6, 2011 Based on your grasp of the tax system, I wouldn't worry too much about your "winnings" just yet. Link to comment Share on other sites More sharing options...
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