As long as you can use the capital losses it is a valid point |
Unless, I am missing something, although you are subject to dividend tax of around 50 - 58p a share, you create a CGT loss of the difference of what you paid and £1. This loss can be carried forward to future years, The CGT is 18% or 24% and can be applied to property gains, whereas the dividend tax is only 8.75 at the lower rate.
Is this understanding correct? |
I couldn't POSSIBLY comment :-) |
How did you vote ;) |
FWIW , I've had the first corporate action in on the Aviva prefs from iDealing today |
I don't I'm afraid but It's a credit/bond fund like BIPS or TFIF so I would imagine it comes to how they have to present returns for accountancy rules purposes. |
Thanks, interesting - have never heard of - do you know why eps almost doubled 2022-2023? |
Have a look at MGCI for yield , they're just doing a new raise as well so you might be able to participate in that and avoid stamp duty |
Yes if everything goes according to Aviva plan and you have shares in a tax free wrapper otherwise tax on special and ordinary dividend will hit the return. |
Am I reading this correctly?
If you buy today at 150p plus stamp duty, you will get 158p in c.3 months, giving c.7p a 4.7% return.
Thank you! |
I wouldn't be too concerned, it was only yesterday it was announced and they need to make sure they get it right. It should appear in the next few days. FWIW I haven't had notification from any broker yet |
I don’t see anything on ii yet regarding voting. Is that something we expect to see there soon ? |
SAN and SANB |
They are all disappearing unfortunately...I still have stab,stac and ella which I bought more of with gacb proceeds, gacb was bought with rsab proceeds...but this trick is about over.I have been gradually switching into bips, ncyf, tfif, smif and shrs.Anyone recommend anything else? |
AV.B is being killed as well. |
Any replacements that anyone could recommend ? I hold AV.B and GACA and NTEA |
You are not really getting 158p on cancellation though, as 4p of it is just the dividend you'd receive if they didn't cancel.
For a basic rate taxpayer holding outside a tax wrapper, who has used up all their dividend tax free allowance, there is 8.75% to pay on the 51.115p special dividend i.e. 4.5p. So really for that person it's 149.5p (147.5p if you they didn't vote in favour).
Cutely ii are offering 148.78p to sell... |
Managed to top up with some spare cash at 1.49, a 5% capital gain on spare ISA cash for a 3 month window seemed very generous. Christ knows who's selling? I guess lots of people are confused about the tax implications or something? |
Knowing HL, they probably won't let me trade them! |
Unless you want to be a holdout - e.g. voting against Cancellation (eg for tax reasons, hoping Cancellation fails to be approved), or you don't want to Tender if Cancellation fails, I reckon:
- Just Tender all your shares
- If the Cancellation fails the Preference-shareholder-vote, the Tender will proceed and you will get 155p/share total on 2 May
- In the more likely event (I assume) that the Cancellation is approved by Preference shareholders, the Tender will not proceed. Your shares will be Cancelled and you'll get 158p/share total on 12 June (including the 2p Voting fee as Tendering is counted as voting)
Happy to be corrected.
Will be interesting to see what our brokers make of it! |
For those with holdings outside a tax wrapper it could become expensive if the vote goes in favour of the capital reduction and cancellation as the amounts over the par payment will be classed as income. For those with holdings in a tax wrapper it barely matters other than waiting an extra six weeks for your money. Dependant on tax rates it needs weighing-up if selling in the market is preferential to receiving a slug of income and paying tax on it (no advice being given)
I'm not certain why they have made it so difficult as a straight Tender Offer seems preferable!
Perhaps I'm missing something |
You do not have a choice. The process via voting decides the outcome.
The process is if you tender your shares then in doing so you automatically appoint the Chair as your proxy to vote in favour of the proposed Advisory Vote Resolution and the Cancellation Resolution.
From the circular:
SUMMARY OF OPTIONS AND POTENTIAL OUTCOMES FOR PREFERENCE SHAREHOLDERS
You have the option to:
(A) tender your Preference Shares for purchase (and automatically appoint the Chair as your proxy to vote in favour of the proposed Advisory Vote Resolution and the Cancellation Resolution) (Tender Instruction (Option 1)); or
(B) attend and/or vote on the proposed Advisory Vote Resolution and the Cancellation Resolution without tendering your Preference Shares for purchase (Voting Only Instruction (Option 2) or Voting Only Instruction (Option 3)); or
(C) take no action. |
Excusing my ignorance tiltonboy/anyone but what is the difference between cancellation and tender and how do you go about it please? Are there specific risks attaching to either option, it seems obvious to go for the 4p option but that would no doubt be too easy!! |
If the cancellation is voted through tender will not happen, just cancellation |
Not quite as simple as I thought! |
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