| Scottish Power / "B" shares query [message #377972] |
So, 09 April 2006 00:49 |
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I have a number of Scottish Power shares (approx 1500 "to hand"), and in=20
the proposed refund of money from the sale of Pacificorp, they want to=20
convert roughly 1/3rd of shares to "B" shares, and issue a cheque for=20
about =A31.20 per share on all (?) shares held at a particular date.
Three options are given for the "B" shares (what are they exactly ? - it=20
doesn`t sound like you can sell them as you would normal shares), and=20
they go something like this...
a) sell them for =A33.60 each and get it as "income"
b) sell them for =A33.60 each and get it as "capital", either now or at=20
some point in the future through some "in house" scheme (?)
c) something else that didn`t seem applicable to me
I don`t really see the difference between A & B, other than one wouldn`t=20
appear to have immediate tax implications ?!?
Just to complicate matters, i`m also part of an "employee share=20
ownership plan", and have probably 3 times as many shares under it,=20
although many will still be "locked in" for a period of time before=20
they`re free of tax implications.
Does anyone know what happens to these under the "B" share scenario ?
If it makes any difference, i`m on about =A321k and hoping these changes=20
won`t force a temporary hike to any other tax bracket !
Thanks :-}
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| Re: Scottish Power / "B" shares query [message #378163 ] |
So, 09 April 2006 23:43 |
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On Sat, 8 Apr 2006 23:49:16 +0100, Colin Wilson <void [at] btinternet.com>
wrote:
>I have a number of Scottish Power shares (approx 1500 "to hand"), and in
>the proposed refund of money from the sale of Pacificorp, they want to
>convert roughly 1/3rd of shares to "B" shares, and issue a cheque for
>about £1.20 per share on all (?) shares held at a particular date.
>
>Three options are given for the "B" shares (what are they exactly ? - it
>doesn`t sound like you can sell them as you would normal shares), and
>they go something like this...
>
>a) sell them for £3.60 each and get it as "income"
No, you get a £3.60 one-off dividend from each of the shares, which
then become virtually worthless.
>b) sell them for £3.60 each and get it as "capital", either now or at
>some point in the future through some "in house" scheme (?)
You can sell them immediately if you wish to make use of your CGT
allowance.
>c) something else that didn`t seem applicable to me
You can sell the B-shares gradually as your CGT situation allows. This
can be done on specified dates. They will pay dividends at 75% of one
year LIBOR in arrears, based on the value of £3.60.
>I don`t really see the difference between A & B, other than one wouldn`t
>appear to have immediate tax implications ?!?
>
>Just to complicate matters, i`m also part of an "employee share
>ownership plan", and have probably 3 times as many shares under it,
>although many will still be "locked in" for a period of time before
>they`re free of tax implications.
>
>Does anyone know what happens to these under the "B" share scenario ?
>
>If it makes any difference, i`m on about £21k and hoping these changes
>won`t force a temporary hike to any other tax bracket !
There is a section in the offer document devoted to employee share
schemes. If you haven't got a copy you can download it from their web
site as a PDF file. See Page 18 of 52.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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| Re: Scottish Power / "B" shares query [message #378166 ] |
Mo, 10 April 2006 00:25 |
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> >a) sell them for =A33.60 each and get it as "income"
> No, you get a =A33.60 one-off dividend from each of the shares, which
> then become virtually worthless.
I`ll probably just go for this - sounds the easiest :-}
> You can sell the B-shares gradually as your CGT situation allows. This
> can be done on specified dates. They will pay dividends at 75% of one
> year LIBOR in arrears, based on the value of =A33.60.
What`s LIBOR ?
> >Just to complicate matters, i`m also part of an "employee share=20
> >ownership plan"
> There is a section in the offer document devoted to employee share
> schemes. If you haven't got a copy you can download it from their web
> site as a PDF file. See Page 18 of 52.
Cheers - I hadn`t spotted that
Thanks again :-}
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| Re: Scottish Power / "B" shares query [message #378176 ] |
Mo, 10 April 2006 12:12 |
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On Sun, 9 Apr 2006 23:25:02 +0100, Colin Wilson <void [at] btinternet.com>
wrote:
>What`s LIBOR ?
London Inter-Bank Overnight Rate
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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