Avesco Share Discussion Threads

[sasannach] 30/1/2014 15:24

The RNS said it is due to be paid "on or around 31 Jan"

Have a look in the transaction history, which is where I can see the cash offer acceptance and also the book adjustment. Guessing payment will follow in a few days.

[bonnard] 30/1/2014 14:36

I know that the usual dividend is to be paid in March, but Sippdeal are telling me that there is no special dividend and my sipp account is showing a loss from the fall in avs share price.

[erkman] 30/1/2014 14:23

No that is the usual dividend

[bonnard] 30/1/2014 14:18

I have just been told by Sippdeal / AJ Bell that the next dividend will not be received until March. No payment of special dividend. What are they talking about? Has anyone else communicated with them?

[sasannach] 29/1/2014 10:32

I can see some sort of transaction note in AJ Bell but no money deposited. Also they look to have deducted a small amount. Not sure what for? Will wait to see the money and then ask them what this is for.

[bonnard] 29/1/2014 10:07

Is anyone else using Sippdeal / AJ Bell ? There is no sign of my dividend allocation in my account. Am I the only one?

[rogash] 29/1/2014 09:34

I wonder if many will be re-investing their proceeds next week in Avesco.

[quepassa] 29/1/2014 08:11

Finncap reiterated its "corporate" rating on Avesco yesterday 28th. January, with a Target Price of 150p. This suggests an upside of some 22% to Avesco's current price.

ALL IMO. DYOR.

QP

[b1ggles] 28/1/2014 09:55

Liquid Millionaire, did you ever find the answer to your question about the cut-off date for creating a capital loss?

I'm looking at doing something similar with another company and can't quite figure out whether I have to buy three days before the record date (as with normal divis) or whether buying on the record date is sufficient.

[michaelmouse] 26/1/2014 19:14

hxxp://michae1mouse.blogspot.co.uk/2014/01/market-correction-and-updates.html

Incidentally, MCL is now MCLcreate. Nice website.

hxxp://www.mclcreate.com/

Michael.

[veldt] 24/1/2014 18:30

Not in my wife's Barclays yet either, but also in my HL. Hargreaves Lansdown are almost always the most efficient at adjusting your account when there are one-offs like this. I know it was all going to happen but it is still nice to see the details in black and white in my account.

[salonie] 24/1/2014 17:19

RNS out, divi shares have been allocated to my H&L accounts. Not in the share centre so far.

[quepassa] 23/1/2014 23:24

Excellent question!

Working out the base cost and any disposal cost of the New Holding is indeed where the rub lies for CGT calculation purposes.

You need to go to the relevant circular about the Proposed Return of Cash which gives the correct calculation/computation to use in this case for CGT purposes:-




In a nutshell:-

P. 38

"Any gain or loss will be calculated by reference to the difference between the redemption price of the B Shares (less the amount of the redemption price which is taxed as a dividend, as explained above) and the element of the Shareholder's original base cost in their Ordinary Shares that is attributed to the B Shares.

The amount of the base cost to be attributed to the B Shares will be determined as outlined in Section 1 of this Part VII."



P. 37 Section 1 of Part VII says:-

" 1. Capital Reorganisation
For the purposes of the United Kingdom taxation of capital gains and corporation tax on chargeable gains(CGT), the Capital Reorganisation should constitute a reorganisation of share capital and as such should not
itself give rise to any liability to CGT. The receipt of B Shares and C Shares will be treated as the same asset as, and as having been acquired at the same time as and for the same consideration as, the Shareholder's holding of Ordinary Shares.

Following the Capital Reorganisation, a Shareholder's combined holding of Ordinary Shares, B Shares and/or C Shares (the New Holding) will have the same aggregate base cost as the Shareholder's holding of Ordinary Shares immediately before the Capital Reorganisation.

On a subsequent disposal of the whole or any part of the New Holding, including a disposal pursuant to the redemption of B Shares under the Capital Option below, the Shareholder's base cost in respect of the New Holding will be apportioned between the Ordinary Shares, B Shares and C Shares by reference to their respective market values on the first day of dealings in the Ordinary Shares after the entitlement to receive the bonus issue of B shares and C shares expires."



ALL IMO. DYOR.

QP

[funchalman] 23/1/2014 22:34

I am fairly sure that's it for the £1.10 dividend.if you owned the shares at 5pm
today then you get the £1.10 as either capital or income or a combination of both if that's what you requested.if you sold the shares before 5pm today then you do not get the £1.10.I expect our share accounts will be credited tomorrow with either b or c shares,then come 31st Jan we get our cash £1.10 and eventually the b and c shares disappear from your share account.or at least that's what has happened in the past when I have received a return of cash.
the shares will open down tomorrow to reflect the £1.10 paid , but what will they close at? . come 5th feb at the latest there are going to be something like 29% less shares in issue,after the taya share buyback

[simon cawkwell] 23/1/2014 18:45

I wonder if some clever fellow would care to offer an opinion as to the computation of the capital gain for CGT which should be taken into account.

Simon Cawkwell

[salonie] 23/1/2014 18:12

I called Hargeaves Lansdowne and they reckon that the ex-dividend date was today at 5pm.

Not 100% convinced what will happen, I suggest you check it out for yourself!

[salonie] 23/1/2014 17:49

I found this, not too sure how it will work but have a read :-

What You Need to Know About Share Dividend Dates
Dividend investors should be aware of these important payment dates
Esther Pak 9 March, 2011 | 10:30AM


Question: I'm relatively new to dividend investing, and I know that there are some important dates I should be aware of--record dates and ex-dividend dates, for example. What do I need to know?

Answer: Most investors are very familiar with dividends, but they may be less familiar with the specific timeline associated with a company's dividend distribution: the declaration date, the record date, the ex-dividend date, and the actual distribution date. Although buy-and-hold investors don't have to be keenly attuned to all of those dates, it's still important to have a working understanding of them. We've outlined some key dates below.

Declaration Date
This date, also known as the announcement date, is the date on which a company declares it will pay a dividend.

Record Date
Once a company declares that it will pay a dividend, it then sets the date--the record date--by which you must be a shareholder to receive the dividend.

Ex-Dividend Date
To further complicate matters, dividend-paying stocks also have what are called ex-dividend dates--usually two business days before the record date. If you buy or sell shares of stock between the ex-dividend date and the record date, the stock is said to trade without its dividend during that period. In practical terms, that means that the former owner of the stock--and not its new buyer--will receive the dividend if the transaction occurred on or after the ex-dividend date. If you buy a dividend-paying stock before the ex-dividend date, you will receive the upcoming dividend payment. The reverse is also true: If you sell your stock before the ex-dividend date, you give up your right to claim the dividend.

While cash dividends are the most common form of dividend payment, sometimes a company will pay a dividend in additional shares of the company rather than cash. In that case, the ex-dividend date is the first business day after the stock dividend is paid (and is obviously also after the record date). Thus, if you sell your stock before the ex-dividend date and the company has distributed additional shares, you have sold away your right to that stock dividend, too.

Payment Date
The payment date is straightforward: It's the date that dividend checks are mailed or deposited in shareholders' accounts.
- See more at:

[veldt] 23/1/2014 17:11

Well I am a holder of some lovely Avesco shares at 5.00 pm on 23/01/2014, so I am due to benefit from the dividend. Hooray! Under usual circumstances I should be able to sell tomorrow and still get the dividend. I would be very grateful if someone could tell me if is this is the case here, since it is a one-off dividend rather that a more normal quarterly dividend.
Also I see that in the USA there seem to be special rules that seem to state that if the Dividend is over 25% then you have to hold until the payable date. Does anyone know if there are any such special rules here?
TIA.

[quepassa] 22/1/2014 12:04

Share Dividend formally approved at Avesco's GM this morning.

Taya Buy Back also approved.

ALL IMO. DYOR.

QP

[mathewawood] 20/1/2014 14:33

Done some research and I'm pretty sure AVS is going Ex-Div tomorrow.

The RNS says: Record Date for determining entitlement to B Shares and/or C Shares


5.00 p.m. on 23 January

So if you bought shares on the usual 3 day T+3 settlement period tomorrow 21stJan they would be settled on the 24th i.e. not entitled to the 110p divi.

[erkman] 18/1/2014 22:20

LM

No

[liquid millionaire] 18/1/2014 22:18

Thanks funchalman but isn't basic rate tax deducted at source on divi's even when paid into a pension scheme such as a SIPP?

[funchalman] 18/1/2014 22:15

Liquid Millionaire :- whether you take the return of cash as capital or income
it will be £1.10. .ie if you hold 1 share of avs in your sipp it will be £1.10
under the capital option into your sipp.if you opt for the income option you will
also receive £1.10 into your sipp.

regards

[liquid millionaire] 18/1/2014 17:04

Also a poster previously mentioned that one could buy AVS get the special divi and then use the capital losses.

Good idea!

But what is the cut off date for doing this?

Once again thank you in anticipation.

[liquid millionaire] 18/1/2014 17:02

If you hold AVS in your SIPP as i do i am right in saying it does not matter if you go for income or capital options?

My answer would be Capital as there would be no with holding tax as there would be on the income option.

Would appreciate any comment/feedback on this as relates to a SIPP

Thank you in anticipation.