Aviva Share Discussion Threads

[wadders5] 13/5/2022 21:50

Good call.All mine showing in HL still. Taken screen shots.

[klotzak] 13/5/2022 20:59

As per my post 133333. Not sure what the problem is here, it's already been said, plus if you look further back another poster quoted the circular.

[typo56] 13/5/2022 20:40

For the stupidly rich still agonising about the CGT, on page 28 of the circular it does state:-

To calculate the tax due on a subsequent disposal of all or part of a Shareholder’s B Shares or New Ordinary Shares, that Shareholder’s CGT base cost of their holding of Existing Ordinary Shares will need to be apportioned between the B Shares and the New Ordinary Shares by reference to their respective values on the first day on which the New Ordinary Shares are listed. A worked example with details of the respective values will be made available on the Company’s website shortly after the implementation of the B Share Scheme and Share Consolidation.

So look out for that worked example next week. Hopefully it will stack up with my post 13320..but who knows!

[spud] 13/5/2022 20:09

Good to see that II are on the case early doors. Of all the O/L brokers I've used, they are head and shoulders above the rest. Rest assured that they'll be the first to sort error free. (Feeling sorry for the angst to be experienced by some other investors with lesser brokers). spudPS And I'm not promoting ABDN.

[mister md] 13/5/2022 19:32

was surprised to see my ii portfolio not showing much increase since yesterday despite big individual share gains - now I see its because of Aviva temporarily at 0.

Here's the info for those who also don't constantly check all the corporate action notifications ... :

What is happening?
Proposed Consolidation and Return of Capital
Consolidation:
Effective date of the Consolidation: 16th May 2022 Ratio: 76 new shares for every 100 shares held
Return of Capital:
Ex-entitlement date: 16th May 2022
Terms: GBP1.0169 in cash for each share held
Expected payment date for Return of Capital: 19th May 2022

[spud] 13/5/2022 19:29

Money! It's the weekend and I'm too busy spending it to worry about it. Monday it will get my full attention. spud

[pvi1] 13/5/2022 19:26

Mine is still showing all shares as normal with ii

[adejuk] 13/5/2022 19:08

my holding is in a sipp and i have no idea of the impact
is ne1 else in the same position and if so, how do you see monday share price unfolding?

[klotzak] 13/5/2022 18:56

Aviva said in their circular that they would provide an example. Just gotta wait til next week.Apart from the example below, there's an example 1rob did around a month ago.

[scrwal] 13/5/2022 18:53

Brokers will deal with the consolidation in different ways. Your 25p Ords will disappear since they don't exist as such but you should get the new holdings by the open of business on Monday - they may have a new ticker code and a new nominal value as they aren't 25p Ords anymore.

It is surprising that there is little info about calculating CGT and the cost of the new holding. When SLA did their B share consolidation all such info including worked examples was available before the event.

[adejuk] 13/5/2022 17:52

f
there's 10% gone

[eurofox] 13/5/2022 17:52

Mine still show on Barclays, but have taken PDF copies of all my accounts as a record of the positions

[thaisi] 13/5/2022 17:48

Me too must be to do with Mondays consolidation

[adejuk] 13/5/2022 17:45

can ne1 explain why my holding is showing at zero in my ii a/c

[typo56] 13/5/2022 17:21

klotzak, I think that's correct.

As I said, the return of capital through the B shares is effectively a forced sale of about 25% of your holding. The base cost for CGT of the B shares is linked to the price the consolidated shares close at on Monday.

If that price is below a certain level then yes, you might be crystallising a loss for CGT, because you've been forced to sell part of your holding at a lower valuation than your holding cost.

That's my reading of it anyway.

[coxsmn] 13/5/2022 17:04

Any buy price under 423.7p then make a profit with the share consolidation.

Very nice.

[typo56] 13/5/2022 16:59

CGT is obviously best avoided by using ISAs and SIPPs. However, I assumed the question was posted by someone who was 'stupidly rich' rather than 'plain stupid', so I afforded them the courtesy of a reply.

I rarely post on ADVFN these days. I've been reminded why.

[klotzak] 13/5/2022 16:51

Typo. As an example, say you bought a few weeks ago at 425, and Monday's 'potential' close at 415. Then in that instance you make a loss?

[waterloo01] 13/5/2022 16:23

Exactly. I have most in SIPPs/ISA but a decent amount in trading account for income Didn't expect and not wholly welcome to have a GCT bill as already used up much of my allocation this year already.

Happened to me last FY with KAZ and a forced sale and large GCT bill

[klotzak] 13/5/2022 16:20

Paying max into an ISA, then SIPP may well leave some for dealing accounts. Why is that stupidly rich?

[yf23_1] 13/5/2022 16:16

CGT not applicable to ISA's....
So one can assume that you're either stupidly rich or just plain stupid to be paying CGT as you can put in £20,000/yr into ISAs.

I'll get my coat........

[typo56] 13/5/2022 15:47

For CGT purposes you need to calculate the base cost of the B shares being redeemed.

e.g. suppose you currently hold 1,000 shares acquired at 380p per share

The base cost of your original shares is 1,000 * 380p = £3,800

This base cost now needs to be apportioned between the 760 consolidated shares you're retaining and the 1,000 B shares you're redeeming.

The base cost of the B share return should be apportioned using the market value of the consolidated shares at close on their first full day of trading (i.e. Monday) and the value of the amount returned via the B shares (i.e. 101.69p per share).

e.g. suppose the consolidated shares close on Monday at 405p

In this example the market values at close on Monday will be:-

Consolidated shares = 760 * 405p = £3,078.00
B share return = 1,000 * 101.69p = £1,016.90

This means the original cost base for the B shares is deemed to be:-

1016.90/(1016.90 + 3078) * 3800 = £943.67

This means your taxable gain on the B share redemption is £1,016.90 - £943.67 = £73.23

The cost base for your remaining 760 consolidated shares becomes £3,800.00 - £943.67 = £2,856.33

As you see, this is effectively a forced sale of about 25% of your holding. It is not the same thing as receiving a dividend.

[klotzak] 13/5/2022 15:46

6pm on Friday 13 May 2022 - Record time for entitlement to B Shares and Share Consolidation in respect of Existing Ordinary Shares Your new shares will appear in your accounts by start of play Monday.

[1robbob] 13/5/2022 13:25

Goodpick
They announced with the Capital Reconstruction statement, that the dividend for 2022 will be 31.5p and for 2023 33.0p
That is pretty conclusive

[1robbob] 13/5/2022 13:21

I am by no means a Tax expert, but this is what I think the situation is:

For CGT purposes:
The book cost of the B shares sold is calculated as follows:
Based on a market price pre Capitalisation of 405p

Book cost of Ord shares held (say 380p) multiplied by B share proceeds (101.69p) divided by ex issue ordy price* (say 405p) + proceeds of B shares (101.69p)
So: (380x101.69)/(405+101.69)
= 38642.2/41184.45
= 93.83p

So in this example there is a capital gain of 6.17p per B share sold

The book cost of your ordinary shares will remain the same, but you now hove 76 for 100 held

* This is the first dealing price ex Capitalisation. Which Aviva have said they will announce on their Website