Real Est.Cred P Discussion Threads

[nerja] 05/1/2015 16:40

Mine also just gone in.

[wirralowl] 05/1/2015 16:31

...payment finally just landed in iweb!

[wirralowl] 05/1/2015 15:46

I have RECP in 4 accounts, idealing, selftrade & youinvest all paid on 31st, still waiting on iweb (which is a subsidary of Halifax I believe..)

[nerja] 03/1/2015 09:57

Thank you sky, I am with the Halifax sipp and isa both not showing it,hassel!

[skyship] 02/1/2015 17:47

Yes, YouInvest a/c credited late on Wednesday

[nerja] 02/1/2015 17:39

Anybody got the divi paid yet on this?

[cwa1] 30/12/2014 16:41

Leaving aside the "cast iron" part :-D, it is also worthy of note that that 5% rate is also tax free if held in an ISA.

[skyship] 30/12/2014 16:16

The share price has steadied slightly after the recent XD. Now @ 106p-107p.

These prefs will pay-out as follows:

# 2015: 4 x 2p = 8p
# 2016: 4 x 2p = 8p
# H1'17: 2 x 2p = 4p
# Q3'17: 1 x c1.69p = 1.69p
# Redemption: 100p

So, buy at 107p, receive 121.69p for a GRY of 4.86%

Add in a little notional interest on the early interest payments; and the adjusted return is still 5%pa.

Anyone have any idea where else you can get a cast iron 5%?

[skyship] 25/10/2014 18:54

langbarb - yes, the redemption date is 16/09/17

According to my liquidation stock spreadsheet (mainly for Zeros) the stats are:

# Current Yield at 108 = 7.41%

# Redemption Yield = 5.38%

Cheapest offer recently has been 108.1p - I bought a few at that

They closed Friday on offer @ 108.25p

[langbarb] 25/10/2014 11:05

Hi all could you confirm the maturity of REPC is 16 Sep 2017?.
From the prospectus: "The Company further issued 13,322,328 Existing Ordinary Shares and 49,958,704 Preference Shares on 16 September 2010" and "The Preference Shares have the right of redemption.... if not redeemed earlier pursuant to paragraphs (i), (ii) or (iii) above, on a date that is seven years after their issue at the Repayment Amount."
If so how would the last dividend be calculated? As accruing from 1 July 17 to 16 Sep 17 (78 days out of 92 for the quarter and thus = 2*78/92 = 1.695)?
If I bought today at 108 what would my GRY be assuming above is correct? 4.6% approx?
many thanks

[cwa1] 04/10/2014 12:45

Many thanks to you both for your help.

[jonwig] 03/10/2014 18:58

Ireland wh tax is, I believe, 20% to you. (It should offset against UK income tax due.) IoM is 0%, as grahamburn says.

If you do SA online (I use TaxCalc) it will be done automatically.

[grahamburn] 03/10/2014 17:40

CWA1

I can (hopefully) resolve the Hansard Global plc query. The dividend from this entity is definitely paid gross (as confirmed direct to me by the company secretary).

It is best to include this on the Foreign Income pages (as there isn't an appropriate box on the UK pages) with Isle of Man as the source.

Obviously the dividend is only taxable in your hands if you are liable to income tax once all your income is added together.

[cwa1] 03/10/2014 17:11

Many thanks for that jonwig.

I DO fill in a SA tax return.

May I please, like Oliver, ask for a little more?! I have two other Overseas dividends which I was going to ask on their respective boards but I might as well ask if you know first :-) One is Carador(CIFU) which is Ireland and the other is Hansard(HSD), Isle Of Man. Can I assume they are treated the same, IE treat them as if they were a UK dividend and having a notional 10% tax credit? Or is there anything "tricksy" with either of those countries of origin?

Once again, my thanks for you help, it is much appreciated.

[jonwig] 03/10/2014 16:17

After EU Directive 2008-09, your dividend is first subject to Guernsey withholding tax of 0%, and then treated as a UK dividend and a notional 10% tax credit.

In your SA tax assessment, you can enter it under foreign earnings and country code GGY.

If you don't do a SA tax return and don't pay above basic rate tax, you can probably just not declare it, as you'd have no extra tax liability.

If the dividend had been from - say - Germany, withholding tax wouldn't be zero so it would be deducted at source before the net amount treated as a UK dividend. A claim back can, in some cases, be made to the overseas tax office.

[cwa1] 03/10/2014 16:08

Afternoon All

I've got some RECP in my ordinary, non-ISA, dealing account with Selftrade. This is the first time I've had any of it in a non-ISA account. Just starting to get my tax return stuff sorted out at the moment. In the Selftrade Schedule of Dividends for Overseas Companies, the RECP payment is shown gross(Guernsey origin) and is detailed as having no overseas taxes deducted.

Does this mean the whole amount is subject to UK tax? Or has it suffered some overseas tax but Selftrade don't mention it? Can I claim it back IF there is any tax already levied/can I net it off against tax actually due in my return?

Would be very grateful for any helpful pointers as it is the first time I've had any overseas dividends to deal with in the dealing account.

Cheers

[envirovision] 30/9/2014 20:10

Guess this has begun its very very gradual fall back to redemption par now?

Peaked at 109.75 pence 4 years after issue, who would have imagined that.

[badtime] 30/9/2014 14:04

Bit of weakness in the zeros

[skyship] 03/9/2014 08:06

XD 2p today - Paydate 30th September

[wirralowl] 14/8/2014 14:53

Agreed Skyship, re: savings rates. Will be interesting to see when rates finally do start to rise, whether banks actually pass the rises on to savers too. I'm not holding my breath.

I particularly like RECP because of its senior ranking (I don't know of many other senior ranking investments offering such a rate?) but I'm at 12% here and almost 5% RECI, so think I'm probably fully loaded here now too.

[skyship] 14/8/2014 09:59

"Sensible allocation" - yes, a concern now with limited value opportunities causing portfolio concentration. I'm at 15% here now...so will leave it at that.

WO - You're right - so much better than cash earning diddly-squat...

[wirralowl] 14/8/2014 09:27

Same here badtime. I pretty much emptied my savings account last September(paying about 1.5%) and deposited the cash into RECP instead.

[badtime] 14/8/2014 09:17

Ive got so many sky ..more than a sensible allocation

[skyship] 14/8/2014 08:14

Couldn't resist a small top-up ahead of the 3rd September XD date.

Paid 109.1p for a current yield of 7.33% and a GRY of 5.22%.

These are so much cheaper than all the ZDPs with GRYs now of c3.25% if you can find it!

[skyship] 04/6/2014 08:23

XD our 2p today...