Tax on shares

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geordief

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I opened an account (one of those Charlie McGreevy shemes where the government topped up the investment by 25% back in 2002. ( a SSI PIP account )

The whole thing performed extremely badly but the value has now recovered to the extent that I can see that tax is beginning to be charged .

Can I consider cashing in the whole amount and resaving it in another similarly share based scheme?

From what I can see the tax I am now being charges on any increase in value is something like 40% and that is why I am thinking along these lines.

Can I "start again from scratch" and benefit from any increase in the value in shares or will I be obliged to pay this 40(?)% one way or another.

Probably irrelevant but we are only talking small sums (a capital just over 10 thou)
 
The SSIA structure is such that on encashment any growth is subject to "exit tax". So if you encash it now that it is in profit, the Life Assurance company is obliged to deduct 40% of the growth. Even if you do not encash the policy now but leave it for some years, the Life company is obliged to deduct any "exit tax" on each 8 year anniversary. When the first 8 year anniversary arose (2010?) it probably was in negative value and thus no "exit tax" liability arose. The next 8 year anniversary will presumably be circa 2016, so if you leave it invested until then (and assuming it is still in profit at that stage), the "exit tax" will be deducted from the value whether you encash or not.
Hope this helps.
 
Oh I see . So if I open a separate account it will attract 40% growth tax from day 1 .

I am not going to be able to circumvent this tax by closing this account as soon as it becomes profitable and opening another one ... ????

I was under the misapprehension it seems that I was allowed a certain level of growth before the tax kicked in....

By the way is there a problem with the "edit" button at the moment . I can't seem to see it ...
 
geordief said:
[broken link removed] maybe I have it here....
Click to expand...
[broken link removed] no that didn't work either. (I uploaded the screenshot to another website and tried linking to that image)

The screenshot image is at [broken link removed] (for now)
 
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