Can I sell right before the ex-dividend date then buy back for UK Reit?

[j2ee]

UK Reit charges 20% tax for dividend, can I sell it before the dividend date then buy it back to avoid it? Or it charges for everyone then sends to their accounts so I don't even need to do that?

By the way I am not an UK resident and try to invest in UK Reit as a foreigner through local IB brokerage. What other tax or fee I need to consider?

 

[joseph1986]

why would you ask this question. delete thread then do research

 

[malaguti]

UK Reit charges 20% tax for dividend, can I sell it before the dividend date then buy it back to avoid it? Or it charges for everyone then sends to their accounts so I don't even need to do that?

By the way I am not an UK resident and try to invest in UK Reit as a foreigner through local IB brokerage. What other tax or fee I need to consider?

if you buy the shares after the ex-dividend, you cant receive the payment of dividend and if you are a holder up to the ex-dividend you will receive the dividend

typically its a few days prior to the actual payment date, and a few days after the dividend is declared. now you do realise that the 20% tax is based on the payment of the dividend, so you will be better off holding for the dividend
in fact you will often notice that the share price rallies just prior to ex dividend, so that you can have held the shares just for a few days and still get the benefit of the dividend. 20% tax, who cares, surely its the income you are after?

anyway, hope this answers your question

 

[j2ee]

if you buy the shares after the ex-dividend, you cant receive the payment of dividend and if you are a holder up to the ex-dividend you will receive the dividend

typically its a few days prior to the actual payment date, and a few days after the dividend is declared. now you do realise that the 20% tax is based on the payment of the dividend, so you will be better off holding for the dividend
in fact you will often notice that the share price rallies just prior to ex dividend, so that you can have held the shares just for a few days and still get the benefit of the dividend. 20% tax, who cares, surely its the income you are after?

anyway, hope this answers your question

sell before the ex-dividen date then buy back only costs me transection fee while I earn through the whole year holding without the 20% dividen tax. I just want to see if I miss anything.

 

[counter_violent]

sell before the ex-dividen date then buy back only costs me transection fee while I earn through the whole year holding without the 20% dividen tax. I just want to see if I miss anything.

Selling your holding prior to the ex dividend date and buying back afterwards costs you 2 x transaction fees.

You are not earning anything if you are not holding through the ex dividend date.

A rise in the share price is not earning, it is capital appreciation and is subject to gains tax.

What is it you mean by "earning"? As far as I can tell, you would be earning nothing and racking up considerable costs in transaction fees.

There is no guarantee that a share price will go up, but this does not usually matter when investing for earnings. Investors are primarily concerned with a return on their capital. If the shares increase in value, then this is a bonus.

 

[j2ee]

Selling your holding prior to the ex dividend date and buying back afterwards costs you 2 x transaction fees.

You are not earning anything if you are not holding through the ex dividend date.

A rise in the share price is not earning, it is capital appreciation and is subject to gains tax.

What is it you mean by "earning"? As far as I can tell, you would be earning nothing and racking up considerable costs in transaction fees.

There is no guarantee that a share price will go up, but this does not usually matter when investing for earnings. Investors are primarily concerned with a return on their capital. If the shares increase in value, then this is a bonus.

The drop right after the ex dividen day suppose to reflect all the dividen they riets pay to shareholders, and it also reflect some people can claim back the 20% tax. I cannot claim any tax return so if i direct get the dividen would cost me more since the 20% dividen tax is much more than 2x transection cost.