Something to Consider if You are a Non-Taxpayer

If you have money invested in shares which pay dividends, you need to be aware that this is paid net of a non-refundable 10% tax credit.  If you are a non-taxpayer it may be worth looking into moving your investment to receive bank or building society interest instead of dividends.  The 20% interest which is deducted by the bank or building society can be claimed back by a non-taxpayer or they can file form R85 which means interest can be paid gross ie with no tax deducted. 

In the current climate the rate of return from bank or building society account is not very high.  You may prefer to stay in stocks and shares which are obviously more risky but have the potential for a greater gain (or loss!).  For the reasons stated above it may be worth choosing stocks in companies that reinvest profits in the business rather than pay them out in dividends.  Be careful to ensure that you utilise your annual capital gains allowance if you have a significant portfolio by selling off shares to keep gains below £10,900 for the tax year 2013/2014.