Aviva Share Discussion Threads

[rongetsrich] 18/5/2022 17:17

Have you ever dealt after a B share?
I’ll give you a clue, the B share had value on Monday, and it did not increase or decrease in value. You should know the amount.
The consolidated shares did change in value, so the price accepted at close of play is the figure to be used.
It’s obvious you haven’t read the inputs from others on here that have given examples.
Rather than barge in, I’d advise you to read in.

[typo56] 18/5/2022 16:25

Thank you Rongetsrich. Of course, as per the circular:-

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.

[rongetsrich] 18/5/2022 16:07

Wrong. You use the date of the consolidated shares going live.

[uppompeii] 18/5/2022 15:12

Well I bought back the ones that were sold so I'll get a decent Divi if nothing else, if they continue to pay it with some consistency.

[typo56] 18/5/2022 13:54

The B shares were redeemed on 17 May. I think I'd use that date for CGT. Therefore perhaps the apportionment should be based on the closing price on 17th May (405.65p), not 16th as I've shown. Best check the Aviva guidance note.

It begs the question, what if you buy more AV. within 30-days of 17 May (e.g. with the redemption proceeds)?

Fortunately not a problem I have.

[beermat1] 18/5/2022 13:51

Marksp2011, pretty conclusive this is a chargeable event, with Aviva providing a template of the CGT computation, or do you still disagree?

[edmundshaw] 18/5/2022 13:45

So the sale of the B shares is the disposal date? Hm. That changes all the same day trade stuff. Yikes!

[typo56] 18/5/2022 13:28

As the B shares have been redeemed I believe this is a capital disposal event for CGT. It wouldn't be if the B shares weren't being redeemed and you held on to them as a separate line.

To account for CGT correctly you need to apportion the base cost between your remaining consolidated shares and the B shares you've redeemed.

The value of the remaining consolidated shares should be based on Monday's closing price of 394.65p. The values per original, unconsolidated share, at close Monday were:-

Retained consolidated shares: 76/100 * 394.65p = 299.934p
Redeemed B shares: 101.69p

That means for the B share return you need to apportion a base cost of:-

101.69/(299.93+101.69) = 0.253197 * original base cost

For your remaining consolidated shares their base cost is now:-

299.93/(299.93+101.69) = 0.746803 * original base cost


e.g. if you originally bought 4,000 AV. at 250p the original base cost would be £10,000. This means the apportioned cost would be £2,531.97 for the B shares and £7,468.03 for the consolidated shares you're retaining. The B share proceeds you've received on 4,000 shares would be £4,067.60. This is realising a capital gain of £4,067.60-£2,531.97 = £1,535,63.

At least those are my calculations. Aviva have promised to provide shareholders with a worked example.

Of course, if you're holding in an ISA or SIPP you don't have to worry about CGT and are free to adjust your cost base in whatever way makes you feel good!

[tradejunkie2] 18/5/2022 12:56

I hope the price comes down it's going up fast!

[eurofox] 18/5/2022 12:54

Of course, it is now more difficult to (re)acquire shares, because the number of shares in what I would call the liquid float of shares to be traded is now 24% less - so good luck with that if you are looking to add or rebuy, or close a short in any volume, since this reduced liquidity has been noticeable in level 2 orderbook data for a couple of days now.

[wadders5] 18/5/2022 12:44

Can't buy in ISA if already used allowance for the year. Have to wait for cash to land.Purchased at £3.91 inc costs in trading account. It should have all been aligned so the cash was available at consolidation in an ideal world. Still showing a payment date of 19th in HL accounts. Will see tomorrow if its paid or new date added.

[1robbob] 18/5/2022 12:42

TradeJunkie2
!!!!
They have been redeemed by AV...that is where your cash is coming from

[eurofox] 18/5/2022 12:41

You won't see any B shares in your account - the relevant RNS makes clear that B shares will never be admitted to the LSE and will be redeemed on Tuesday 17th, with the funds appearing in your account at some stage by 31st May.

[prokartace] 18/5/2022 12:40

If you had bought shares at the lowest price in the tax year (363p) you would reach the cgt threshhold if you had bought more than £280,000 worth. All irrelevent to me as my shares are in a SIPP

[eurofox] 18/5/2022 12:38

My account came on-line with Barclays just in time to add under 400, but I did most of my additional buying just before Thursday last week, so will have the benefit of additional B shares as well. The funds when they come will probably be spread across LGEN, MNG and PHNX

[cyberian] 18/5/2022 12:33

eurofox...probably like you and a few other poster here one had to use other spare funds if available to buy ahead of receipt of B share money...luckily I did at just over 390p but still a little short of original holding...not worth quibbling over so may use funds to buy another stock that still appears undervalued. Just annoying that one has to wait until 31/5 at the latest....I guess there is a lot of paper work/cross checking before money is released to ones Broker. The one I use will credit my account on receipt of funds with no delay so fingers crossed....they have already advised status of consolidation event about 2 weeks back so there should be no delay. All my shares held in ISA so do not have some of the issues that other posters are experiencing...best wishes. PS. Incidentally, our house insurance premium has just gone up 10% with AVIVA , but they advise that it is INDEX linked and competitors are increasing by as much as 16%. They are all getting away with it due to cost of material prices going up, difficulty in supply chain. and probably labour costs. People have to cover and like paying the extra fuel cost for ones car what can one do apart from driving less...plus a number of garages are not accounting for the HMG 5p reduction which is scandal by some big retailers.

[rongetsrich] 18/5/2022 12:25

Or a CG loss. If you bought above 415 you really don't have an issue. If you bought a lot lower then maybe you'll be eating into your allowance, but you'd have to have a really significant number to blow your £12300 allowance.

[davebowler] 18/5/2022 12:12

I think the sale of the B shares is a CGT event.

[rongetsrich] 18/5/2022 12:10

Time to move on, uncle Albert!

[uppompeii] 18/5/2022 12:02

I still would like my Divi that was cancelled tbh.

[tobyjo] 18/5/2022 11:32

marksp2011,could you advise me how this event affects the original cost price ?