Legal & General Share Discussion Threads

[mcunliffe1] 22/9/2024 10:11

N.I. to be levied on the employer contributions to pensions?

I was self-employed from the age of 27 - a sole trader status not a limited company. I paid a reasonable amount each month into my personal pension and was able to claim tax on such at my marginal rate.

Would I have been liable to pay N.I. on those pension payments being 'self-employed'? If so, I would in effect be paying N.I. twice.

Currently, employers contributions are not taxed and do not require N.I. payment. If this changed it would have a massive impact on the civil service and central (and local) government funded pension schemes.

Can't see that happening.

[mirandaj] 22/9/2024 09:45

Starts:
"The boss of one of the UK's biggest pension firms has warned the Chancellor against tax changes that could deter people from saving for retirement.

Antonio Simoes, who took over as head of Legal & General at the start of this year, said savers needed 'stability' to convince them to lock their money away for the long term."

Ends:
"Bosses at six other pension firms representing millions of savers last week lined up to warn the Chancellor, in The Mail on Sunday, of the damaging consequences of a raid on pension contributions.

Pensions are a target for Labour as it has ruled out raising income tax, VAT or corporation tax.

Think-tank, the Institute for Fiscal Studies, has urged the Chancellor to stage a £2 billion raid on wealthy savers' pension pots by slashing the amount that can be withdrawn as a tax-free lump sum.

It has also called for pensions to be subject to inheritance tax and for National Insurance to be levied on employer contributions to pensions.

But it warned against reducing income tax relief on pensions contributions for higher rate earners, describing such a move as 'damaging, complex and inequitable'."

[spawny100] 21/9/2024 09:46

Mccunliffe I think you'll find SQZ yield to be a lot more than 10% even now; the forthcoming interim is 9p alone. Of course it could be argued yield is so high because market is indicating it thinks a cut is coming, but they just maintained the interim. I personally think it's been priced for far worse than the worst case windfall tax scenario but we may find out at the time of the budget. Anyway I'll say no more about it on this board.

[sumday] 21/9/2024 09:09

@McC. CAML is a company I’ve held on and off for years. It always seems to do everything right but somehow is never reflected in its share price.

[mcunliffe1] 21/9/2024 07:51

Out of the debate between spawny and Wood I have had cause to look at Central Asia Metals plc (CAML).

9.61% divi at the moment. share price much the same now as it was 1 year and 5 years ago. A low point in Feb of this year - a good time to have bought in hindsight and lock-in an even better yield.

Serica Energy PLC (SQZ) pay about 10% yield. Over a year the share price has pretty much halved but over five years it has dropped about 5%. It very much 'peaked in the summer of 2022.

I hold SBLK and do so for the yield and as it's in my SIPP there's no withholding tax. The divi's are however in US dollars and hence suffering slightly from the weak Dollar strong Pound.

So, guys, thanks for the discussion because it's brought two shares to my attention, CAML being of more interest than SQZ to me.

[cwa1] 20/9/2024 18:05

Hi spawny100

Discuss the argument. Disagree with the poster. Tell them why they're wrong...but, please, no offensive comments about other posters.

Thanks

[woodhawk] 20/9/2024 17:55

Well spawny100, I hope you're more successful with them than you have been with LGEN. Who cares what prices you have 'bought' at. Do you only buy each share once? Do you never reinvest. Maybe you'll buy more if the prices rise or falls, who knows. Maybe you'll panic either way - who knows but you?

To make some spurious claim that you've bought some unknown number of so and so shares at so and so price is the mark of gambler and utterly meaningless other than as a short term punt.

An as for "All far more likely to grow than LGEN" - well you called it wrong on LGEN by your own measure. Now of course, you're bound to be right aren't you?

[spawny100] 20/9/2024 17:49

Since you asked so nicely woodhawk I've bought SQZ at 112, CAML at 174 and SBLK at $20. All far more likely to grow than LGEN and all pay chunky dividends. No advice intended and dyor etc.

[woodhawk] 20/9/2024 17:44

spawny100,

Please do let us all known which shares you are investing in where there is never any capital erosion and still pays a nice chunky divi. I'm especially interested as it seems you must be able to predict the future of your choices too? I mean you decided to invest in LGEN and when you decide YOU called it wrong, or it didn't perform as you expected, you whinge and flounce out... to what? Another wrong call? No of course not, the grass is always greener elsewhere, anywhere, isn't it?

Of course capital erosion also depends what prices you or I might have bought at, sold at or reinvested at. What arbitrary time period are YOU using btw? I mean, some people's compounding investment is another's short term gamble gone wrong.

All I know is that LGEN is my second most profitable holding over the last 9 years (with minimal trading over the period) and an extraordinarily resilient divi payer too (even during Covid).

Maybe I'm just lucky?

[spawny100] 20/9/2024 17:07

This share is starting to stink I agree ade. I've sold 70% of mine recently to fund purchases elsewhere. As has been said here many times what good is a 10% yield if your capital is gradually being eroded?

[adejuk] 20/9/2024 15:13

the trend is depressing
tempted to get out for a while

[drectly] 20/9/2024 12:49

The amount of buy backs is trivial at the moment. With the divi at nearly 10%, there is logic to share purchase with significantly more cash available from recent sale. Get the impression the new CEO would probably rather keep the cash to cover the divi and do just enough to maintain his position and very good personal package.

[skinny] 20/9/2024 12:21

They have.

[jubberjim] 20/9/2024 11:58

I was under the impression that they have been conducting buybacks

It has done nothing for the ordinary shareholders but as I have said here and elsewhere it does ensure the parameters to ensure the directors a grant of options

An enhanced dividend would serve us all a heck of a lot better.

Is my biggest holding but I see no point in continuing to add while it remains in the doldrums with all the attendant risks now being highlighted

Back to me tomatoes now be good

[alphorn] 20/9/2024 09:34

Thx. MC.

As previously posted the situation is indeed very opaque. It could IMO blow up. A part of any loss would, it appears to me, be borne by the pensioners of the bought-in defined benefit plans who would have their pensions reduced to the legal limit. If it happened the courts would have to rule on the position. (eg Would Boots have escaped their plan commitments to their plan members?)

Shades of Subprime would be if the Insurers sliced and diced these bought-in plans and sold them onward.

I still have some LGen shares and have written calls against them to boost yield. I hope to get out at some point.

[mcunliffe1] 20/9/2024 08:52

Same article from cfro without paywall:

Alphorn has expressed concerns about the risks being taken on by the likes of LGEN (and PHNX I would guess as well) when they take over a pension fund. I cannot profess to understand the details but I am aware that I have almost 50% of my invested part of my SIPP tied up in LGEN and PHNX. Whilst the divi's are very welcome and the main purpose of my investing I would not relish a massive capital loss.

[cfro] 20/9/2024 06:30

An interesting article in the FT by Gillain Tett on future hidden risk in the LIfe Insurance industry. Mostly any "risk" seems to lay with the US PE backed Life insureres but some do believe a blow-up could happen in any one of the UK top five.

Worth reading through the end comments also:

[jubberjim] 19/9/2024 17:35

Very disappointed with this particular share at the moment

Maybe quadruple witching tomorrow will give us some impetus but for now concentrating on Abdn as think the quad witch has started

Here's hoping



Will concentrate the minds?????

Will buy this if it dips but not otherwise

Good luck

[netcurtains] 19/9/2024 13:42

Does this EDF pay 11.7% dividend yield? And if so what is the catch?


Its OK - I've looked at average joe video. It says you lose 25% of your capital over 10 years with Superdividend ETF so you're better off with LGEN



(I'm surprised someone does not want this information spread around - how odd)

[skinny] 19/9/2024 08:21

The closing price and thus the following morning's opening price are set by the closing auction's UT trade - yesterday's was 8143433 @221.19p.

[elbrus55] 19/9/2024 07:23

It is a SETS trading system stock.Through the day I believe you see the 'last trade' but it ignores certain trade types and reporting flags, including most retail trades (they appear as 'Off book' in the trading data you can get directly from LSE.)At 16:30ish there is a closing auction and some large volumes can get matched and traded by institutions. I believe this is what you see after hours. The concept of a share price is a bit simplistic. There are different share prices depending on the volumes involved and trading system you are using.Note you cannot influence the closing price simply by trading one share at 16:29:29 at a silly price. This would distort the derivative markets.