Employee share scheme, dividends
Discussion
I partake in my employers share scheme, and have done for the past 6 years. Currently dividends (if there was one), would be paid out, not reinvested.
I've tried looking online, but it isn't that clear. Would this payment fall under the £2000 tax free limit, or does that not apply as I've purchased shares from within the scheme. I can see that reinvested dividends can be sold as tax free shares after 3 years, but little information referring to if they are paid put.
Clearly if this is an issue I can just reinvest a the divi payment, and sell the equivalent tax free shares, if I wish.
Do I have to do self assessment even if the total sum of dividends is less than £2000, will be for a fair few years no doubt, but try don't want to get into sticky situation.
I have recently bought some RR and nanoco shares (outside of an isa wrapper), both of which seem to have seen 20% rises this week, and have reasonable potential to do pretty well in coming years. So aware I need to be careful, if these begin to start paying dividends also.
(FYI I do also drip feed into a Vanguard s&s isa, hence why I've had to buy other shares outside of this).
Hopefully that kind of makes sense, cheers!
I've tried looking online, but it isn't that clear. Would this payment fall under the £2000 tax free limit, or does that not apply as I've purchased shares from within the scheme. I can see that reinvested dividends can be sold as tax free shares after 3 years, but little information referring to if they are paid put.
Clearly if this is an issue I can just reinvest a the divi payment, and sell the equivalent tax free shares, if I wish.
Do I have to do self assessment even if the total sum of dividends is less than £2000, will be for a fair few years no doubt, but try don't want to get into sticky situation.
I have recently bought some RR and nanoco shares (outside of an isa wrapper), both of which seem to have seen 20% rises this week, and have reasonable potential to do pretty well in coming years. So aware I need to be careful, if these begin to start paying dividends also.
(FYI I do also drip feed into a Vanguard s&s isa, hence why I've had to buy other shares outside of this).
Hopefully that kind of makes sense, cheers!
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