Mckay Securities Share Discussion Threads

[specuvestor] 10/2/2012 09:51

Hello Guys

With regards to reclaiming the 20% tax, Selftrade have e-mailed me to say that they do not reclaim it. It is up to the investor to contact HMRC. Are others having this problem?

I also have a holding in my SIP with Hargreaves Lansdowne and they told me it is not a problem and that they reclaim the tax rebate within a few weeks.

This is the Selftrade reply:

Selftrade hold shares within a pooled nominee service where not all clients are liable to UK tax. Individual circumstances differ and we are unable to apply a bespoke service to accommodate each client's tax status. This would negate the operation of a pooled nominee service. For this reason and the fact that we are operate under a pooled nominee service we do state within our Terms and Conditions: "As your Investments will be held in an unallocated pool, (and are not distinguishable by client/beneficial owner), you may receive dividends or other distributions net of tax which has been paid or withheld at rates that are less beneficial that those that might apply if the Investments were held in your own name or in allocated accounts."
At this stage, we advise that you contact HMRC as they may be able to provide individual guidance as to how to reclaim any taxes. We apologise for any inconvenience caused in this matter.

[ursus] 31/1/2012 10:11

"Think as insurance" - and therein lies the root cause of the banking collapse 2008. If only people had thought of them as insurance and they had been regulated accordingly.

[flying pig] 31/1/2012 07:36

Equally if interest rates had increased the profits would have been protected.

Think as insurance.

[timanglin] 26/1/2012 12:29

ok, apologies, I am with you - essentially the hedge is telling you how much profit the bank is making in the meantime - thanks for the clarification, i appreciate your better knowledge.

[wjccghcc] 26/1/2012 11:14

tiltonboy is right. As the swaps approach expiry, the liability will revert to zero. Think of the liability as a measure of how much they would have saved on their interest bill if they hadn't hedged.

[tiltonboy] 26/1/2012 10:59

timanglin,

An interest rate swap is valued by reference to the rate the loan was taken out, and prevailing rates. If the loan runs for five years, and the swap is in negative territory, providing the swap isn't broken in the intervening period, that negative valuation will revert to nil over the duration.

[timanglin] 26/1/2012 10:45

as always the word 'if' creeps in - a 36p (and possibly increasing) potential hit on hedging is considerable. maybe a more detailed discussion about hedging from other posters and a more detailed statement on hedging in the RNS, would be useful, because my understanding(maybe wrongly) is that if the negative hedging/liability runs to term then this is owed to the banks?

[jonwig] 26/1/2012 10:36

timanglin - it's my understanding the hedges expire to zero asset/liability if the run to their final date. Dissolving them early incurs a cost. So 'sorting them out' might not be worth the effort.

The so-called NAV is that required under IFRS accounting. They also quote a NAV ("NPRA") which removes the hedge feature.

[timanglin] 26/1/2012 10:30

From the latest RNS: 'reduced from 197 pence to 161 pence mainly on account of the negative movement in the value of the interest rate hedging instruments.'

They really need to sort out their hedging before this becomes interesting.

[skyship] 22/1/2012 17:40

puku - IFD is the cheapest. At 33p they yield 10.66% and stand at a 30% NAV discount. Research now, then wait for the next IMS (NAV/Divi/etc) to confirm the up-to-date stats. IMS should be due this week.

SGRO is a great opportunity; but they rose 10% on Thursday/Friday last week, so I banked a quick turn and will wait/hope for a pullback.

[jonwig] 22/1/2012 16:34

Lord G - it sometimes gets complicated: a REIT can announce a dividend which is not wholly a 'PID' (property income distribution) which has the tax reclaim. There might be an ordinary one included; eg. TCSC in its latest:

Proposed final dividend unchanged at 7.34p (2010: 7.34p). To be paid as a Property Income Distribution ('PID') of 6.25p and an ordinary dividend of 1.09p.

With MCKS, the latest interim dividend of 2.7p was wholly a PID. I've already got the 2.16p, which is 80% of that. The rest will come in due course.

The PID comes from rental income, the ordinary dividend could come from reserves, gains on sale, etc.

[lord gnome] 22/1/2012 15:36

Thanks for that debate guys. I'll put my MCKS in my ISA when funds become available to do the deals. I'll have to buy and sell to transfer them across, but that will be cheaper than losing 20% tax on my dividends.

[jonwig] 22/1/2012 14:38

SEGRO is still bombed out, yield nearly 7%. Industrial sheds a bit unfashionable, and euro exposure, of course.

TCSC is overlooked - Leeds mainly, Merrion Centre - yield over 7%. Had quite a good recession with no fundraising or divi cut. Lot of retail, hence big discount to NAV.

Those are the two I hold (and MCKS) and would recommend. But you need a tax shelter (ISA, SIPP) to get the reclaim.

[puku] 22/1/2012 12:59

very interested in the tax-reclaim scenario for REITs What other companies would anyone recommend ?

[grahamburn] 19/1/2012 14:15

Looks like the tax reclaim takes varying lengths of time, depending on the nominee: the gap between the previous net dividend payment (4 August) and the tax refund was over six weeks (19 September) on my wife's ISA account.

[specuvestor] 19/1/2012 12:22

Thanks guys. I will wait and see. The Britsh Land website has exemption forms on its website for 1) Beneficial Owners and 2) Intermediaries.
I presume that as the holdings are in a nominee account they need only complete one form.

[stemis] 19/1/2012 09:17

Yes, I hold mine in Selftrade and in August the reclaimed tax came 14 days after the dividend.

[jonwig] 19/1/2012 08:29

Specu - Your ISA provider will reclaim the tax. It normally takes a week or two. This happens with all my ISA-based REIT holdings.

[specuvestor] 19/1/2012 08:25

Just checked on the recent Mackay dividend paid into my Selftrade ISA account. A tax deduction of 20% was applied. I was under the immpression that a) REIT dividends were tax free and b) ISA dividends were tax free. Is this just Selftrade or have other investors noticed this?

[pillion] 06/12/2011 19:35

Good find GB
I'm stalking mcks

[grahamburn] 05/12/2011 19:31

Brief positive mention in this article on commercial property shares:

[skyship] 29/11/2011 11:31

A good buying opportunity - so bt back 3k @ 110.66p - the small number I sold @ 117p just after the figures!

Thnx Graham - I'm an hour ahead of you here in France, but certainly not a whole day!!

[speedsgh] 29/11/2011 11:10

I'm finding it hard to take the drop in the share price prior to going ex-div as a positive sign. It may turn out to be a great missed opportunity but I have decided to err on the side of caution and stay on the sidelines for now.

Skyship - what's your take on it?

[speedsgh] 29/11/2011 11:01

From recent Half Yearly Report...

"Details of the programme for the payment of the interim dividend are as follows:

Ex-dividend date 30(th) November 2011

Record date 2(nd) December 2011

Interim dividend payment 12(th) January 2012"

So you have until the close of play today to qualify for the interim dividend.

[grahamburn] 29/11/2011 09:47

Tomorrow - 30 November. (Unless you mean at 4.30.01pm today!)