Banco Santander Share Discussion Threads

[pvb] 21/1/2011 12:57

Acamas,
Are you saying this 10% tax in UK does not exist

Yes. Of course, as companies have paid Corporation Tax, they will be paying dividends from taxed income_. The 10% is a tax CREDIT, my understanding is it is to offset against an indiviuals taxes given that the dividends have been paid from income_ that has already been taxed, via company taxation.

The old scheme, witholding tax, was what was ended in 1997 or whenever.
When the ISA_ was introduced it coincided with the changes and so all tax reclaims within PEPs/ISAs should have stopped (no tax to reclaim!) but, I presume in order to boost the ISA_, for 5 years the 10% Tax Credit actually was creditted to ISA_/PEPs. This left many people thinking they were actually getting a 10% dividend tax reclaimed in the ISA_ - in a similar fashion to the original PEP Tax Reclaimed. They weren't!

Anyway, that's how I see it.

You could look here:

[d0ubtf1re] 21/1/2011 10:00

Nice to see you on the scene Essential, feels good to be able to move my G stop up on this one within a few hours, hope to be margin free on this before long. I regard this as one of the genuine value plays left not just in the sector but the market and believe me I have researched my heart out these last few weeks.

twitter @realdealtrader

R-D-T.

[essentialinvestor] 21/1/2011 08:49

Nice call d0ubtf1re.

[acamas] 21/1/2011 08:27

pvb,

I understood that Gordon Brown imposed a 10% tax on Share Dividends that the Company pays before they pay us our dividends. It is this tax to which I was comparing the withholding tax in Spain

Are you saying this 10% tax in UK does not exist

Must admit I thought HOIL paid the 10% recently prior to us shareholders getting our £1 dividend because there was much talk on that BB about how much of the £1 they would get net. The full £1 or say 90p of it. But we got the £1 and HOIL paid the 10% tax before we received our £1

[hollerich1] 21/1/2011 05:55

bnc have not refeclected his true value.

[d0ubtf1re] 20/1/2011 21:41

Couldn't resist a nibble at this today in the aftermath of Cramers glowing comments on cnbc. Long @ 743.5 with a Guaranteed stop in place in the event of something silly like armageddon. Yes I can see myself stakebuilding in this over the next year (or averaging down! - whichever comes first terms & conditions apply etc etc)The way i see it spanish default is priced in, won't happen! the chinese will keep buying bonds simple as that - (if only to diversify away from owning the rest of the world)The year of the bank?, no the year of the banco!

d0ubtf1re always knows!

twitter @realdealtrader

[pvb] 20/1/2011 19:31

Acamas - 12 Jan'11 - 08:33 - 528 of 543

If you take the dividend you cannot as I understand the system reclaim the Spanish withholding tax under an ISA. It is the same principle as our own 10% dividend tax that the Company pays on our behalf before our dividend enters the ISA.

Ooo... I can't let this pass. I tried, honest I did, but I just can't.
Acamas, there is no UK witholding Tax on UK share dividends. Granted, if all the people who seem to think there is were laid end to end, they would reach from the City of London to the Moon.

UK companies pay Corporation Tax, with the after tax income_ they then pay dividends straight to shareholders, and reinvest the remainder in the company.
There is no 10% Tax witheld! If you receive the dividends within an ISA there is no tax to pay. Outside an ISA, if you are not a higher rate taxpayer there is no tax paid by an individual on dividend income_; if you are a higher rate taxpayer there IS extra tax to pay on share dividends outside of an ISA.

[cjl2112] 18/1/2011 17:27

Another nice little tick up here, may long it continue....

[hollerich1] 14/1/2011 19:54

fubaratbirth- you are right, but not a lot of people will sell which is even good for bnc, the earning season begins for the banks next week, and US bank which none of them is as strong as bnc, are expected to announce huge profit,this will translate into why bnc is absolutely undervalued, you never know christmas may come early in FEB in the terms of £13 to £14 which bnc should actually be at the moment.

[fubaratbirth] 14/1/2011 12:01

had just got in from my work!! and now heading back out to it!

[mike24] 14/1/2011 03:26

what you doing up this early? looks risky to buy in on two days of rises,
very miffed I did'nt buy in a couple of days ago
will hope for a decent retracement, looks a good hold
for the long termers,
edit whilst you are all optimistic about sp, balance events out with spain's
20% plus unemployment,austerity measures,overvalued currency
high inflation, a busted housing market, and rate rises on the way

[fubaratbirth] 14/1/2011 03:20

See an RNS was released yesterday (13th) re the script dividend for free shares as follows -

The number of free allotment rights needed to receive a new share is 65. The shareholders of Banco Santander who appear as such in the book-entry registries of Iberclear at 23:59 on the day of publication of the announcement of the Increase in the Official Bulletin of the Commercial Registry ("Boletin Oficial del Registro Mercantil") (envisaged for January 14) will be allotted a free allotment right for each share of Santander held. Therefore, the aforementioned shareholders will have the right to receive a new share for each 65 old shares held on the mentioned date.

So explains the increase today! all those holding at close of play on 13th going into 14th entitled to one new free share for each 65 old they hold or they can sell enitlement and take the money.

I think I got that right ! have I Hollerich?

[fubaratbirth] 14/1/2011 03:14

Hope your right Holler :D whats your feelings on it after that ? If it goes over the 9.30 mark or so I think I will be looking to sell the part of my holding I bought in last January on basis I would be looking for a retrace and then maybe buy back in. Keeping my long term holding as they cost me nothing. But do you think it will go back down as low as 8 or 7 or even lower or more likely stabilise now round the 9 mark if it gets there? Difficult to call I guess but thinking there might be chance to get in lower than what I have had to sit at for a year now before mid to long term it starts to show its true worth and go towards the £13 and £14 mark some brokers are saying they think it should be at.

[hollerich1] 14/1/2011 00:00

houston we have lift off, guy you see here we go. wad keep up the faith and keep on collecting,fubaratbirth this will trade within the range of 8.90 to 9.45 within the next 2 months before any significant retrace, everybody wants this now plus they will be announcing the previous quarter soon.

[fubaratbirth] 13/1/2011 13:01

well called Holler, here's hoping it keep climbing but sure there will be a retrace at some point as some take profits as it climbs. Think Spain due to issue new bonds anyday after Portugal was successful. If that does well it will hopefully have another positive effect on banking shares especially spanish and settle nerves.

[wad collector] 13/1/2011 09:22

Hollerich, my faith is returning....

[fubaratbirth] 13/1/2011 00:33

That would be great cause I would then be able to sell my batch from last year I bought at 9.25 at a profit keeping my second batch I have had for years and main holding which are well in profit from years back. I would then like to see share price go back down again for a short bit and let me buy back in at a lower price before market regains confidence in this share and we head on up and over the £10 mark and further where it belongs.....

dont want much eh!!!

[cjl2112] 12/1/2011 21:34

Back to a tenner before to long hopefully !

[rhubarbe] 12/1/2011 20:18

Thanks Acamas. I have ISAs with TDW and Hargreaves Lansdown. I don't have anything at BNC (yet) but I will do some investigation. Less attractive after today's rise. What price the Spanish bond raising tomorrow?

[hollerich1] 12/1/2011 18:07

fubaratbirth,wad collector,acamas and my other people on this tread- sorry i went fishing cos of the great confidence i have in this baby that is why i have not responded, i just got in now, fubar, yes i agree to the first one and yes to the second one, wad, thank you, guys you see here we go, the cherry of a dudding is in his taste, if you go back to some of my previous post, when i mentioned that bnc could gain 50p in one day, o yeah here we go, during the script period, this will go as far as £8.80. and to all the critics, here is your answer.

[acamas] 12/1/2011 14:37

Have a word with Santander and tell then what you would like to do. If you have a self select ISA with them. I would have thought under Dividend Handling you could elect for shares rather than cash

Edit: I could be totally wrong on this point perhaps you are only able to transfer cash into your ISA. Technically I guess it is slightly different from changing your provider. Normally you are not allowed to transfer shares into a ISA you have to B&B them

[rhubarbe] 12/1/2011 14:04

Trouble is, how do you take new shares if they are held in a nominee account in an ISA?

[acamas] 12/1/2011 08:33

rhubarbe,

If you take the dividend you cannot as I understand the system reclaim the Spanish withholding tax under an ISA. It is the same principle as our own 10% dividend tax that the Company pays on our behalf before our dividend enters the ISA.

If you take shares instead you are not subject to the 18% tax. Then you could sell off a few shares in the ISA to give you the equivalent of your yearly cash dividend

[fubaratbirth] 12/1/2011 00:52

oh yeah and I got my script dividend offer through mail today for Feb. Says that 86% of shareholders took the option of new shares instead of cash dividend in November so guess that says most still have faith in this share.

[fubaratbirth] 12/1/2011 00:49

wow big increase in share volume today! We have been rummaging around the few thousands shares traded in this company for past few weeks then today in space of half an hour we have 40 million shares bought at around 6.25 so somebody is busy? Could this be BNC buying shares for the script dividend you mention Hollerich ??