Looking for zero yield UK growth shares.

[Itsallaguess]

Title says it all. Tax is the driver, I don’t want any income as it will be taxed heavily. I want to show a capital profit and harvest CGT allowance. Any ideas? I own HUR already in this category, and need a few other ideas.

Vanguard LifeStrategy 80% Equity Fund. (VVLSRE)

This is where I dump accumulated capital in my taxable investment account that I want to stay invested, for exactly the same reasons as you - in fact I've just this minute arranged a top-up of my existing holding due to some dividend-accumulation that's occurred over the past two weeks....

Very happy with the performance to date, although it might be a little too sedate for owners of Hurricane Energy....

Cheers,

Itsallaguess

[swill453]

Vanguard LifeStrategy 80% Equity Fund. (VVLSRE)

This is where I dump accumulated capital in my taxable investment account that I want to stay invested, for exactly the same reasons as you - in fact I've just this minute arranged a top-up of my existing holding due to some dividend-accumulation that's occurred over the past two weeks....

Surely that's just a standard accumulation fund, with income tax due on the dividends despite it being reinvested.

Scott.

[hiriskpaul]

Does it have to be uk shares? The US market is better for this sort of thing, Berkshire Hathaway being a good example. It is not "Growth" oriented, just does not pay dividends and so is very tax efficient.

[Itsallaguess]

Vanguard LifeStrategy 80% Equity Fund. (VVLSRE)

This is where I dump accumulated capital in my taxable investment account that I want to stay invested, for exactly the same reasons as you - in fact I've just this minute arranged a top-up of my existing holding due to some dividend-accumulation that's occurred over the past two weeks....

Surely that's just a standard accumulation fund, with income tax due on the dividends despite it being reinvested.

Apologies - you're quite right of course. I had a 'low-yield' reply in my head before I properly twigged that the OP was in fact looking for 'zero-yield' alternatives.

Thanks for pointing that out.

Cheers,

Itsallaguess

[Alaric]

Any ideas?

Fundsmith's FEET investment trust comes to mind. That's orientated towards emerging markets and companies in a growth phase, so not UK. It doesn't pay out dividends to investors because any dividends the fund receives are used to meet charges.

In the same way as yield seeking investors screen by dividend yield, you could reverse sort dividend yield. I expect you would have to screen to eliminate a lot of basket cases though.

[hiriskpaul]

On the "charges wiping out income" front, iShares Nasdaq US Biotechnology ETF has zero yield.

[hiriskpaul]

On the "charges wiping out income" front, iShares Nasdaq US Biotechnology ETF has zero yield.

Sorry, not been going long enough to definitely be zero yield. It will be very low though, say 0.3% max.

[james51]

I hold 2 investment trusts with zero yield: Ballie Gifford Japan Trust (BGFD), and The Biotech Growth IT (BIOG).

James.

[Pendrainllwyn]

JP Morgan India Investment Trust (JII) and it's trading at a one year low too.

Pendrainllwyn

[andyalan10]

Not growth so much as recovery, but as a means of diversifying between sectors, there are plenty of dividend suspenders out there that offer a good chance of capital growth and could be disposed of once a dividend is declared.

First Group springs to mind because I've got so many of them

Andy

[hiriskpaul]

Not really zero yield, but you can avoid income by playing some games tied to avoiding being landed with income. CSP1 is an iShares S&P 500 ETF. It is an accumulating ETF and holders are considered to have earned income if they hold it on the last day of July. You can therefore avoid being landed with this income by selling the ETF before the end of July, buying an alternative S&P 500 ETF (I use iShares IUSA). You then swap back after the end of July and before income is paid on IUSA. I don't want to a capital gain either, so I swap back quickly so the repurchase of CSP1 is caught by the 30 day rule. If you don't mind realising a capital gain, swap back after 30 days.

Obviously this trick is only useful for very liquid securities having tight bid/ask spreads and no stamp duty. Probably not worth it for basic rate taxpayers either.

[hiriskpaul]

Not really zero yield, but you can avoid income by playing some games tied to avoiding being landed with income. CSP1 is an iShares S&P 500 ETF. It is an accumulating ETF and holders are considered to have earned income if they hold it on the last day of July. You can therefore avoid being landed with this income by selling the ETF before the end of July, buying an alternative S&P 500 ETF (I use iShares IUSA). You then swap back after the end of July and before income is paid on IUSA. I don't want to realise a capital gain either, so I swap back quickly so the repurchase of CSP1 is caught by the 30 day rule. If you don't mind realising a capital gain, swap back after 30 days.

Obviously this trick is only useful for very liquid securities having tight bid/ask spreads and no stamp duty. Probably not worth it for basic rate taxpayers either.

Sorry, meant that to be a minor edit!

[Alaric]

Only 2 of the Companies in the FTSE 100 are not paying dividends.

https://www.dividenddata.co.uk/dividend ... et=ftse100

These are Ocado (OCDO) and Just Eat (JE.)

It's a longer list in the 250. Some of the Investment Trusts have already been mentioned, but otherwise there are Companies where the dividend has been suspended and others new enough such as Quilter to have not established a track record. The ranking is by market capitalisation.

Some names will be familiar to both readers of the site and TMF before it.

23 TLW Tullow Oil
39 MTRO Metro Bank
44 COB Cobham
52 AVST Avast
53 QLT Quilter
58 CPI Capita
61 PSH Pershing Square Holdings
74 BTG BTG
79 WIZZ Wizz Air Holdings
90 SPD Sports Direct International
95 PCT Polar Capital Technology Trust
108 PFG Provident Financial
133 IPO IP Group
135 SXX Sirius Minerals
137 INDV Indivior
138 CNE Cairn Energy
157 IHP Integrafin Holdings
163 PIN Pantheon International
164 AMGO Amigo Holdings
165 HVPE HarbourVest Global Private Equity
171 FGP FirstGroup
177 RSE Riverstone Energy
183 VEIL Vietnam Enterprise Investments
190 SRP Serco Group
200 ENOG Energean Oil & Gas
201 HRI Herald Investment Trust
230 BGFD Baillie Gifford Japan Trust
245 JII JPMorgan Indian Investment Trust

[Parky]

Title says it all. Tax is the driver, I don’t want any income as it will be taxed heavily. I want to show a capital profit and harvest CGT allowance. Any ideas? I own HUR already in this category, and need a few other ideas.

Surprised no-one has mentioned F&C UK High Income B shares, FHIB. Despite the name, they pay out quarterly payments in the form of return of capital, so you pay Capital Gains Tax when you sell. The A shares get all the income, the B shares get all the growth. Works for me.

[tjh290633]

JP Morgan Natural Resources fund has a very low yield. It might be one to consider.

Otherwise I suspect that the AIM market might be the best place to look. What about Ormonde Resources (ORM)?.

TJH

[77ss]

Title says it all. Tax is the driver, I don’t want any income as it will be taxed heavily. I want to show a capital profit and harvest CGT allowance. Any ideas? I own HUR already in this category, and need a few other ideas.

My sole zero yielder is Allianz Technology Trust (ATT). So far so good.

If you look at ITs, I think you could find a number of zero/low yielders - without taking on the single company risk invoved in HUR.

[simoan]

Sticking to the original request, what about Wizz Air (WIZZ) and Scientific Digital Imaging (SDI)?

All the best, Si

[MaraMan]

Too scarey for most, but I have done very well out of them and the still have massive potential (and no divi)

Solgold (SOLG)
Asiamet (ARS)

[SalvorHardin]

A bit late to reply, but if your main criteria is UK quoted rather than UK operating, what about Macau Property Opportunities (MPO), which owns property in Macau?

Current share price 188p, most recent net asset value 258p. No dividend. The company is in winding up mode, though there isn't a particular deadline (periodically its shareholders can vote to wind it up). Shareholders recently received 50p per share via a share buyback of 19% of the company at 262p, this represented 62% of the profits of a major property sale (this was treated as a capital gain). In the past they have had offers for the entire portfolio, which have been rejected.

Macau's economy is highly dependent on the casino trade which in turn is dependent on Chinese gamblers (though this is lessening as Macau markets itself nowadays more as a general tourist destination). Although MPO is called a fund, I see it as a property company if only because it has been developing and renting out properties.

There is a hedge fund style charging structure, 2% p.a. plus 20% of NAV gains above 10% per annum since it was floated back in 2006 at 100p (the performance fee hasn't been paid in the last few years). The managers own just over 18% of the company. It's a Guernsey company so there is no capital gains tax for it to pay on its sales.

I've held these for a couple of years, reinvested the recent distribution and plan to continue holding through the winding up phase. It was tipped by Questor in The Daily Telegraph as its investment trust bargain for 2018 (I disagree with the investment trust label). Link below:

https://www.telegraph.co.uk/investing/f ... disappear/