Internet Business Share Discussion Threads

[clond] 15/10/2007 12:35

like to get some more at 10p if possible , I own at 15p and need to get my average down

[old boy returns] 15/10/2007 12:17

I have am added some ibg on the dip this morning - not easy to get in any volume but 50k so far. Just looks too cheap taper relief or no taper relief.

[the analyst] 15/10/2007 12:09

Me too.

I have every confidence in Maz and his gang in creating long-term value at IBG, but it would be a welcome relief to see a good trading update.

The new broker's initiating coverage that they promised to help support the price should come out soon too.

[hirschnathan] 15/10/2007 11:51

I hope we get a positive trading statement to get us out of this rut

[yump] 15/10/2007 11:25

What p....s me off about changes like this in CGT is that every time they happen, its difficult to work out whether you'll be better or worse off, but there's one group of people who benefit every time there's a change because there's more complex work for them to do: the pen pushers.

Nice to be able to rely on the government to regularly generate your new business for you without you having to get off your a..e.

I've picked the wrong profession, but at least I won't die of boredom ;-(

[old boy returns] 15/10/2007 10:53

I suspect the abolition of taper relief on AIM shares / business assets may well be reviewed and fine tuned before next April. I heard this morning that pretty much every respected business organisation in the UK is lobbying to this effect already. Also governments should have learned from the past that pre-announcing significant taxation changes on assets in economically important markets (eg property and shares) is bound to cause problems in those markets. I seem to recall that the announcement that the old MIRAS relief allowance would be split between the owners of a proparty rather than one each for house purchases after a certain date has often been cited as a factor is the house price boom and crash of the late 80's / early 90's becuase it caused a flurry in joint house purchases before the deadline date.

Also, in my view, even if the change goes ahead as announced it makes no difference on my view of IBG as a long term hold at current levels. The market cap is too low to risk trying to realise any gain now for the sake of saving a bit of tax. If it was 30p plus then it would be different.

I also suspect there will be some heavy marketing of tax avoidance schemes in advance of next April. Ideas like converting an AIM holding into a spread bet come to mind.

[the analyst] 15/10/2007 07:16

I hope not too - I'm looking forward to the day when the company is making £10m per year and has a market cap of £200m.

Not in the next few years, but one day...

[hirschnathan] 15/10/2007 05:51

I hope not

[12345th] 15/10/2007 00:04

Would be great if Maz could sell IBG before April. Time to close this sorry chapter in our investing lives.

[the analyst] 14/10/2007 14:43

I agree Ken.

Although I think 18% is a fair rate for cgt, what worries me is the lack of incentives now available for small businesses and the investors that support these businesses. AIM will become a speculators market.

We could also see a rush of AIM companies being taken over before April - those directors that were consdering the possibility of selling up as part of their medium term plan may well decide to do it sooner to take advantage of the 10% tax rate before it disappears.

I also think that after sometime in the second half of next year we may see a big rally in the AIM market as people speculate more and more. At the same time, I imagine we could see a real downturn in house prices as people take advantage of the new, lower 18% rate on selling second homes. But what do I know?

[kenatbabken] 13/10/2007 16:04

This could be a disaster for AIM because the extra tax relief helped balance
out the increased risk you take by investing in AIM.If PI,s migrate to the main market I can see up to 25% being wiped off the share price of most AIM shares and
any new companies wanting to come to AIM may struggle to raise money. Darling
and his advisors clearly hav,nt thought it through in the rush to get this and
the extra death duty allowance news out

[the analyst] 12/10/2007 14:02

I emailed Darling to ask whether he has considered that those people that have invested heavily in the AIM market for the long-term may want to bail out as April apporaches.

Wonder if I will get a reply?

[12345th] 12/10/2007 13:52

feel sure the govmt will add some caveat to prevent potential stampede on Aim!

[muffinhead] 12/10/2007 13:44

i think the problem is between now and next April

after April we are all in the same boat


i think Maz, Ken and other big holders will want to capitalise on the 10% rate

[the analyst] 12/10/2007 12:29

Just been discussing this on the cgt board, helped out by gengulphus

Looking at a situation where a £160,000 gain had been made on a share held for two years, the differences in tax between AIM vs main market and old vs new tax laws are quite big (this example presumes no other income):

Old rules:
AIM share - £5,937 tax payable
Main market share - £53,177 tax payable

New rules
AIM share - £27,144 tax payable
Main market share - £27,144 tax payable

[hirschnathan] 12/10/2007 08:50

Does it mean if you have had the shares for two years and even if not sold, you will get 10% or does it depend if its sold?

[aleman] 11/10/2007 20:22

My CGT will change from 5% to 18% because I do not have enough income to take me into higher rate tax so my 75% taper is effective in the 20% band, but most will not be hit so hard. I'm lucky that most of my excellent gains of recent years have already had their taper utilised so I do not have too much to worry about but isolated cases will be very upset. Some selling around the year end could be offset by a greater number who might want to delay selling with 40% CGT to get 18% in the next year which will reduce supply around Feb/March. Different shares will behave differently depending on share price history and volume of buying over the last few years.

[muffinhead] 11/10/2007 20:01

I wonder how many long term fans will top slice or bed 'n breakfast before next April

[muffinhead] 11/10/2007 19:58

Fears of sell-off on growth market as AIM investors face 80% tax rise



By James Moore
Published: 11 October 2007
Accountants voiced fears yesterday of a flood of money leaving the London Stock Exchange's junior Alternative Investment Market in the wake of the Government's decision to axe "taper" relief on capital gains tax.

The move could have a significant impact on the AIM, which has been phenomenally successful as a venue for young and fast-growing companies that often found it hard to raise funds before the junior market came into being.

AIM shares qualify for taper relief, meaning capital gains on AIM-listed stocks are currently eligible for tax of just 10 per cent if they were held for two years. From next year, when the single CGT rate of 18 per cent is introduced, holders of AIM shares will effectively face an 80 per cent tax hike when they come to dispose of them.

Chris Sanger, the head of tax policy development at Ernst & Young, said: "People with portfolio shareholdings on the main stock market have to pay tax on their gains at 40 per cent if they turn over their shares within three years and this reduces gradually to 24 per cent after 10 years' holding. In future people will be paying 18 per cent on their gains. Therefore, it will be real encouragement for individuals to trade shares and invest on the main market."

Whereas with most, but not all, AIM companies, the gain has been taxable at 10 per cent if individuals held them for more than 2 years. But in future they will be taxable at 18 per cent. So logically there will be a flow of investment from AIM to the main market.

AIM's success was not, of course, just built on the favourable CGT rules. AIM listed shares are still, for example, exempt from inheritance tax.

Companies will still look closely at the market not least because of its "light touch" regulation and the fact that it is significantly cheaper to list there than on the main market.

The LSE has also pointed out that 60 per cent of the money invested in AIM hails from city institutions.

A spokesman for the exchange said: "We are broadly very supportive of the Government's proposal to simplify the CGT regime and to cut the rate by such a large amount; this should help to make equities a more attractive asset class in which to invest. Nevertheless, we are mindful that the removal of business asset taper relief will affect one aspect of the favourable tax framework that AIM has enjoyed."

But Graham Shore, the managing director of Shore Capital, a nominated advisor to several AIM companies and market maker in AIM stocks, said it was bad news. "The first effect it will have is to encourage people to realise assets before the tax change comes in."

So will the CGT change cut the money available to new companies now that wealthy individuals derive no extra benefit from investing in AIM? That remains to be seen. The LSE is hopeful that because there is so much institutional money in AIM, it will not matter.

Higher-rate taxpayers likely to move investments

The Chancellor's radical overhaul of the CGT rules could boost stock market investment amongst private savers, analysts said yesterday.

Fidelity Investments said higher-rate taxpayers making gains would now pay just 18 per cent tax on profits made on the main London Stock Exchange, compared to the 40 per cent income tax charge on savings interest. Richard Wastcoat, Fidelity's managing director, said: "Stock market investment will overnight become far more attractive than squirreling money away in cash deposits."

Chris Sanger, the head of tax at Ernst & Young, said the reforms could presage a shift out of cash.

However, Mr Sanger warned long-standing equity investors would be hit by the abolition of indexation allowance on CGT. The allowance enables investors to increase the acquisition cost of assets held since 1982 or later by up to 104 per cent when calculating CGT bills

[12345th] 10/10/2007 17:20

Nice bit of free publicity today to what I believe is a widely read email alert for foreign property investors:

"I see that Cheapholidaydeals.co.uk has launched a new website featuring holiday news and independent destination reviews. I'm working from the press release – "users will be able to access regularly updated articles on a range of holiday destinations as well as tour operators' news. Holidaymakers will be asked to share their thoughts on resorts rather than individual properties." Useful stuff – and a helpful place to spot upcoming hotspots and to start your due diligence whilst sitting in your comfy old armachair. Cheapholidaydeals.co.uk is also launching a dedicated channel for ski holidays. As well as package holiday deals, the site includes free guides on how to prepare for a ski holiday.

Best Wishes,

Iain

Iain Maitland
Editor, International Property Alerts

International Property Alerts provides free weekday e-alerts on international property news for subscribed members. You can subscribe by sending an e-mail to [e-mail]. Unsubscribe by clicking the link at the bottom of this e-mail."

[baheid101] 10/10/2007 12:17

from Travolution:


CheapHolidayDeals adds ski site
CheapHolidayDeals.co.uk has launched a new section dedicated to Ski Holidays.

Visitors are able to browse ski package holidays on over 100 ski resorts across Europe, the US and Canada.

The site also features free guides to assist ski holiday seekers with vital ski holiday preparations.

Maz Darvish, CEO of its parent company, IBG, explains: "Whilst beach holidays are served by a plethora of websites featuring both deals and content, there is a distinct lack of websites serving the snow market.

"With this new channel, CheapHolidayDeals.co.uk intends to improve the accessibility of ski holidays to the wide audience of holiday bargain finders on the web.

"We've followed our unique approach of enabling visitors to browse for available deals, rather than searching for them. This approach enables prospective holiday makers to get a very strong feel for deals that are 'out there' at any given point and draw ideas and inspiration from it."

[12345th] 09/10/2007 19:19

If Maz had sold the company this year he would only have paid 10% tax on his huge profits. After April next year he will pay 18%. I wonder if he will be tempted to revisit the possibility of a sale this year?

[hirschnathan] 09/10/2007 17:18

Holiday watchdog only has google ads if not clicked through with an affiliate link