Thursday, May 22, 2014

FIF and Tax on UK Shares

Lloyds 9.25% Prefs (LLPC)
Calculation based on 10,000 shares

Current price 137.75p Value GBP 13775
FIF tax at 5% (based on NZ rate 17.5c/$)  13775 x .05 x 0.175       =  GBP120.53

Dividend 9.25% net  GBP 925  (Gross GBP 1027.77 less GBP 102.77 deducted at source)

Tax due in NZ in GBP base is GBP 17.76    (120.53 -102.77)

Convert at rate $1.96 the tax due is $ 34.81
Payable on income of $1813
That is 1.92%

The faults:
If there are other shares that pay less or nil dividend , then they are still taxed on their capital value when over $50,000 in total.

1 comment:

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