Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to uspaul666,WrongLicence388,CryptoPlankton,Anonymous,Instep, for Donating to support the site

An alternative to UK bank shares?

General discussions about equity high-yield income strategies
flyer61
Lemon Slice
Posts: 408
Joined: November 11th, 2016, 12:53 pm
Has thanked: 99 times
Been thanked: 125 times

Re: An alternative to UK bank shares?

#337117

Postby flyer61 » August 31st, 2020, 11:08 am

Just the two banks in my portfolio Handelsbanken (I business bank with them) and Bank of Montreal (thank you Salvor!). Both in my forever SIPP.

Handelsbanken are not paying a dividend presently but given the fees I pay it shouldn't be to much longer before they resume :lol:

Maybe there will be a time to dip into UK banks but I cannot see it. The UK banks seem to be extensions of Government, possibly part of the DSS. They are certainly not run for shareholders benefit. In fact large swaithes of UK listed Companies do not seem to be run for shareholders benefit. Anything to do with Banks, finance, insurance....great if you are a director, employee but shareholder....nah.

Dod101
Lemon Half
Posts: 6813
Joined: October 10th, 2017, 11:33 am
Has thanked: 1569 times
Been thanked: 2774 times

Re: An alternative to UK bank shares?

#337122

Postby Dod101 » August 31st, 2020, 11:16 am

flyer61 wrote:Just the two banks in my portfolio Handelsbanken (I business bank with them) and Bank of Montreal (thank you Salvor!). Both in my forever SIPP.

Handelsbanken are not paying a dividend presently but given the fees I pay it shouldn't be to much longer before they resume :lol:

Maybe there will be a time to dip into UK banks but I cannot see it. The UK banks seem to be extensions of Government, possibly part of the DSS. They are certainly not run for shareholders benefit. In fact large swaithes of UK listed Companies do not seem to be run for shareholders benefit. Anything to do with Banks, finance, insurance....great if you are a director, employee but shareholder....nah.


Re UK banks I agree with you, but insurers for instance have mostly continued paying their dividends. Shares such as Admiral, Direct Line, Legal & General, Phoenix Holdings, Schroders, HL and others have as far as I know continued to pay dividends throughout the Covid crisis. In most cases they have actually increased their dividends.

Dod

Maylix
Lemon Pip
Posts: 75
Joined: November 4th, 2016, 12:16 pm
Has thanked: 68 times
Been thanked: 11 times

Re: An alternative to UK bank shares?

#342508

Postby Maylix » September 24th, 2020, 12:59 pm

Wizard wrote:I checked with Hargreaves Lansdown, where my SIPP is, with a W-8BEN in place the withholding tax on Canadian shares if held in a SIPP is 15%. Any expected income would have to be reduced accordingly. I think that would make the current yield on offer to a UK investor holding in a SIPP with a W-8BEN in place about 5.8%.


Hey Wizard, FYI I just bought some Canadian Bank Sharesfor the first time in my SIPP with AJBell YouInvest. When I queried them about Canadian witholding tax, this is what they replied:

The form which reduces Canadian witholding tax is in fact a NR_301.
However, A NR_301 form is not required for CA investments held within a SIPP as the CRA (Canadian Revenue Agency) recognises our
SIPP as a qualifying pension scheme and all qualifying CA dividends and interest are automatically paid to you free of any withholding
tax.

Might be worth you asking HL some more questions...

HTH
MAylix

Wizard
Lemon Quarter
Posts: 4974
Joined: November 7th, 2016, 8:22 am
Has thanked: 21 times
Been thanked: 891 times

Re: An alternative to UK bank shares?

#342541

Postby Wizard » September 24th, 2020, 2:51 pm

Maylix wrote:
Wizard wrote:I checked with Hargreaves Lansdown, where my SIPP is, with a W-8BEN in place the withholding tax on Canadian shares if held in a SIPP is 15%. Any expected income would have to be reduced accordingly. I think that would make the current yield on offer to a UK investor holding in a SIPP with a W-8BEN in place about 5.8%.


Hey Wizard, FYI I just bought some Canadian Bank Sharesfor the first time in my SIPP with AJBell YouInvest. When I queried them about Canadian witholding tax, this is what they replied:

The form which reduces Canadian witholding tax is in fact a NR_301.
However, A NR_301 form is not required for CA investments held within a SIPP as the CRA (Canadian Revenue Agency) recognises our
SIPP as a qualifying pension scheme and all qualifying CA dividends and interest are automatically paid to you free of any withholding
tax.

Might be worth you asking HL some more questions...

HTH
MAylix

That is really helpful, many thanks.


Return to “High Yield Shares & Strategies - General”

Who is online

Users browsing this forum: No registered users and 6 guests