We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
unless you are a higher rate tax payer
2k threshold is for 'income' dividend.
If you are counting this asset sale as being income then you would be making a donation to UK plc of 7.5% above the threshold.
Yes sorry thats what I mean. At what point is the dividend tax payable? When withdrawing from the investment account or when its paid into the investment account from Tesco?
Ade
I think you mean dividend tax. CGT is something different
Because isn't it above the 2K threshold? Sorry confused.
A
Why would you pay CGT ?
When my circa £7000 "special dividend" gets paid into my investment cash portfolio does anybody know at what point I would have to pay capital gains tax?
Tig
''Exactly, the market did not add the dividend to the value leading up to today. Upon declaration the price did not jump 51p''
ffs have you and others got a brain?
When the Asian asset sale was announced and the market knew what the proceeds were going to be from the sale, the market cap then reflected these facts .When was that, March? (cannot be bothered to check)
eq
''Longtimeinvestor - looking at the sp over the last few years, when was the 51p added in value to it? ''
The value from the Asian asset sale was incorporated into the Tesco market cap.The share price has not reached near 300p in recent times. I had earmarked to sell some shares at 270p which it also hadn't reached. You may be looking at a graph that has been put out by the return/consolidation as per the link showing the share price at over 300p just a couple of weeks ago.
https://uk.finance.yahoo.com/quote/TSCO.L?p=TSCO.L&.tsrc=fin-srch
The Tesco share price has held up well since the start of the Covid 19 market sell off mainly due to the asset sale and what was to be done with the proceeds.
Equilibrium_TBC,
Where are you seeing £3 in the last year? Using the Charts button above, with the timescale set at 2 years, the highest it's been in the last year or so is about £2-58 in Dec 2019 / Jan 2020. That was a result of a dramatic rise up which was probably the result of their RNS announcement of 9 Dec 2019 "Statement regarding Asia". That's probably the bulk of your 51p added value. And those prices were, of course, before the effects the COVID-19 pandemic had on the markets starting a couple of months later.
Mike.
Yes, you'll get special dividend based on your original holding. But to get your holding back up to where it was you'll need to reinvest your special dividend. Just a fair balance sheet shuffle. But if there is a significant uplift in SP by time you get your cash you'll be worse off. Plus trading expenses. On the whole, it will make the company more efficient and hopefully more inevitable (but just hope SP stays down before feeling compelled to buy back to original level). Dividend tax is annoying but hope that will cancel out as we near £3 and beyond.
ec ryder ah yes silly me got it now
Longtimeinvestor - looking at the sp over the last few years, when was the 51p added in value to it? This time last year the SP was higher at around the £3 mark. Surely if the dividend value was added we should have been up around the £3.50 mark before today's action leaving it at £3 again now. I'd expect that this value at present is low and will be re-rated especially with dividends going back into buying more shares. A £2.80 mark surely is where we should be in the next few weeks or so?
Spindler
you are probably looking at the wrong fact sheet on Hargreaves. There are two - one for the old nominal value at 5p and another for the new post consolidation nominal value at 6p plus.
Well I did it in my HL SIPP ... just a few to see if it worked. Anyway this site lists >10,000 trades today so it must be specific to your account ??
just loked again shows nothing just a number to call
So if we put the sour grapes behind us including mine, i sold few week ago on the rns around the BS SD. Where do we see this SP going ? close to or £3 or smidgen above £3 ? I think it;s got the legs on it ? Other views ?
Spindler, you can now as I just did
at least not online
Can't even buy today on HL currently
as we speak.....! (All things being equal) As for reinvestment of SD in Tesco,i a buyback/consolidation is effectively Tesco compelling shareholders to choose Tesco as the preferred choice company for reinvesting the proceeds to maintain their pre SD/ consolidation value of Tesco stock. You could reinvest the SD proceeds in Unilever at the moment and possibly be better off.
Re Divi tax : If youre in an ISA or SIPP you will not get taxed. Neither will you if you are a non tax payer such as say a pensioner not liable for basic rate tav, but I guess those are few and far berween lol
Roll on final results and dividend announcment.
You’ve hit the nail on the head. Future shareholders will benefit from this sale at the expense of previous shareholders. We would have been better selling last week and buying today.
Lti
Many are ignoring the improved fundamentals now that there has been this consolidation. In my opinion many investors would have been happier if the company embarked on a share buyback strategy with the sale of asset money. Not realising that they would be buying at a range much higher than it is today.
The company has reduced liquidity, improved gearing, re negotiated loan rates, reduced pension costs whilst adapting to the pandemic and pressures of online orders.
Many new posters appearing last week and this that are disappointed that they didn’t get a free lunch.
Hopefully traders drop off one by one being replaced with investors who see value in uncertain times.
Lti
Many are ignoring the improved fundamentals now that there has been this consolidation. In my opinion many investors would have been happier if the company embarked on a share buyback strategy with the sale of asset money. Not realising that they would be buying at a range much higher than it is today.
The company has reduced liquidity, improved gearing, re negotiated loan rates, reduced pension costs whilst adapting to the pandemic and pressures of online orders.
Many new posters appearing last week and this that are disappointed that they didn’t get a free lunch.
Hopefully traders drop off one by one being replaced with investors who see value in uncertain times.
Prag, Fully Agree the 'new' or fresh buyers shall see the benefit off the added 'pension' contributions.