Ab Dynamics Share Discussion Threads

[effortless cool] 15/2/2018 12:31

Details here:



It is different from Entrepreneur's Relief but is tax advantageous. Leaving employment is a 'disqualifying event' for those tax advantages.

[cleaninsight] 15/2/2018 12:29

No its either or
And in the employ of the co

[rhomboid] 15/2/2018 12:15

I’m still confused as they also have to hold more than 5% to qualify for Entrepreneurs relief unless I’m mistaken...which is a frequent occurrence 🙂

[tomps2] 15/2/2018 09:48

Yes, cleaninsight as you say all on HMRC website.

EMI options are only subject to CGT they are not taxed as in income. The favourable tax is called Entrepreneurs Relief and taxes at 10% on CGT. To qualify to EMI shares and the holder must be a director at time of selling.

[cleaninsight] 14/2/2018 22:31

And you lose the benefit when you leave the company.

[effortless cool] 14/2/2018 22:12

Thanks, clearinsight. I didn't know that.

[rhomboid] 14/2/2018 21:30

..ah ok 👍

[cleaninsight] 14/2/2018 21:28

According to the HMRC web site Entrepreneurs relief ER can be acheived on shares either obtained through an EMI option scheme or via a 5% ownership of the company.

[rhomboid] 14/2/2018 19:40

I thought it was entrepreneur relief ..but that only kicks in at 5% so not relevant

[pride23s] 14/2/2018 19:36

Its going to be interesting to see what dynamic the new incoming ceo will bring.

[martinthebrave] 14/2/2018 17:33

Tomps2 Explanation is "Cut & Pasted" from a Tamzin(World) Tweet. Tamzin interviewed him last week, therefore likely to be true IMO!

Full Tweet:

I suggest the timing of his sale is due to favourable tax treatment on AIM option stock. On leaving, his remaining holding is subject to CGT. So if he needs the money now for the next phase of his life, he'd be a fool not to take it. The fact he hasn't sold all is v positive.

[effortless cool] 14/2/2018 16:28

I am struggling with Tomps2's explanation, by contrast.

Normally, any gain on employee options is taxed as income at the point the options are exercised, with any subsequent gain subject to CGT (as for any other share held).

I don't understand what is meant by "favourable tax treatment on AIM option stock".

[glaws2] 14/2/2018 16:15

Excellent explanation Tomps2

[tomps2] 14/2/2018 16:12

Re. Tim's sale of shares. Perhaps the timing of his sale is due to the favourable tax treatment on AIM option stock. Once he leaves, his remaining holding is subject to capital gains tax. So if he needs the money now for the next phase of his life, he'd be a fool not to take it.

He still retains a healthy stake, and retaining his remaining holding at this stage suggests he still sees ABDP as a good long term investment for his cash after his departure. He would have to expect the longer term share price growth will exceed the capital gains he'll incur once he's no longer an employee.

[compnews1] 14/2/2018 11:54

good to see share price up this morning. My thinking is that the CEO is no short of money, and if he believed the share price would go higher over the next year or so he would have left it there to gain more. If he was a manager then it would not concern me. CEO's wealth and sold his share in this turbulence market!

[piedro] 13/2/2018 21:32

FWIW,

From the Annual Report:
... as at 31 of August 2017, Timothy Rogers had 75,379 share options, exercise price 395p (11 July 2017 - 11 July 2026)

and,
"the guys pretty old now" - not true 56,

also,
he was only appointed CEO in October 2016

and must give 6 months notice to terminate his appointment

[ny boy] 13/2/2018 18:47

750p support holding

ali47fish

You can create lots of monitors on advfn, with different titles, I have one main one, then about 5 others that I don’t follow so closely.

These are on my main monitor for now. GL

[jg88721] 13/2/2018 18:38

fishy, compnews?! there's a v good reason he's leaving ... the company needs different skills to take the next step up in growth !

Without checking, I guess a fair chunk of his shares were earned (rather than bought) and with his time almost done, of course he's a seller. done it myself albeit I wasn't CEO. but same thinking. you don't have special knowledge/r-ship with the company, and diversify (or use for new ventures)!

[rob762243] 13/2/2018 18:32

As well the guys pretty old now and I would imagine he'd want to spend his money rather than keep it in especially when he has such a large stake

[martinthebrave] 13/2/2018 15:47

compnews1 If you think about it, the CEO selling now is far better than him selling after a new CEO has been announced. Listening to that interview, that announcement isn't too far away. Equally, would you not want to diversify your cash a little if you were leaving the company? I don't think it is fishy, simply common sense.

[compnews1] 13/2/2018 15:25

The CEO's interview sounded very positive but then he sold over 40% of his holding. It put a BIG question for me WHY? Something smells very fishy here. With the falling market and CEO's sell I would resist entering even at 700p - have changed my limit to 650.

[rob762243] 13/2/2018 15:05

Looks like there's solid resistance at 750

[ali47fish] 13/2/2018 14:37

well i suppose the big fall today must be because of the ceo sale- i wonder i when will it bottom to enaqble me to add- from memory there are no negatives

[martinthebrave] 12/2/2018 18:59

Can understand the sale. He still has plenty of skin in the game. This interview by @tamzinpiworld last week is good enough for me -

[ali47fish] 12/2/2018 18:07

Rogers sells 150000 shares