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The trading range seems to be incredibly narrow of late(is there no edit function here ?) ...sign of solid support ? City Boys and Institutions on the brink ?
The trading range seems to be incredibly narrow of rate ...sign of solid support ? City Boys and Institutions on the brink ?
Tesco made the sale not you. Tesco will treat it as a business disposal for tax purposes. You are an investor. You should treat it as dividend income as that is what it is. Do what ever you fancy on your tax return. Good luck if you get caught, but I'd take advice, sounds like tax evasion to me. If you haven't made use of Isa wrappers then do so. If you have, well you are probably sufficiently wealthy, probably not worth the risk of engaging in tax evasion.
bbrinkw...your take on it all is just what I have come to the conclusion of ......My problem with all this , is basically that after consolidation my reduced number of shares divided into the cash I invested has a much higher break even ( up from 2.35 a share to 2.94 a share .!! which means I might have to wait a long time to move out and into something else .whilst I think Tesco is a good share for now , I see weakness ahead when lockdown ends and the glorious turnover subsides.
BB, LTI
Well that is for you to decide how you wish to treat your money . If you have not protected it in the months since you first heard about the circular then that really is your problem.
LTI , you purport to be a knowledgeable investor in the other place so I assume that your comments are simply mischief making for whatever reason.
how the proceeds from the sale of an asset can be classed as income.
Just imagine investing £10,000 in a company and then a couple of weeks later the company sell 50% of their assets which they then return to shareholders. You would be getting back £5,000 of the capital that you have just invested. How could this possibly be classed as income for tax purposes.
I will be classing the return of money from the Asia asset sale as a return of some of my capital that I purchased Tesco assets with in the first place.
Investing is really a gamble (on the stock market). Always has been.
There is no tax to pay (unless you cash in your "bet" and make a profit).
You can make £12,300 before you start to pay tax .
"Gamble" in an ISA and there is no tax to pay.
Gambling is a matter of chance. Investing is not.
Found something on it, but cba to read it all. I'm sure options were explored with regards to how to return the cash.
The fact that it's not usual way to return cash probably means it's either on risky ground in terms of tax evasion.
ggplyr: Just saw your question. I have copies and pasted my message of a few days ago below. You can also click on my name and look for my previous post on TSCO regarding the "Capital Return" issue.
Posted in: TSCO
Posts: 339
Price: 240.80
No Opinion
RE: Sp14 Jan 2021 16:24
The Vodafone sale of Verizone may have had some technicalities which were different but I`m not sure of all of them except with the Verizone deal shareholders were also given some shares in Verizone and perhaps that is the reason why Vodafone could call it a "Capital payment / Return" instead of Dividend. !
Anyway I`m sure its too late to change this now and I don`t think, little old me writing to TSCO will change anything since they have far cleverer people to advise them and if they could have done a "Capital return" I`m sure they would have. But "food for thought" for future sales.
Have you got a link to explain what you mean by capital return or an example of it happening.
While they are tax free a gambling levy is applied which is paid by the gambling company, but ultimately the customer pays of course.
Taxes have to be raised from somewhere, capital gains tax is levied on the wealthy (relatively few will exceed the capital gains tax free amount)
Just a general question here: I believe any profits from gambling including lottery and betting are tax free in the UK, is this correct ?
If so, surely what we are doing here is the same: Ie: betting & gambling. So how come the profits (above the Capital gains allowance) are taxable ?
Realistic answers please. Thanks.
I see there was a sea of blue buys of fairly large amounts at the end of the day. I wonder what has prompted this ?
Any views on this ?
Perhaps as I had suggested before, TSCO have decided to rename the dividend as "Capital Return" so PI`s can avoid paying tax on a "dividend" ?
A share buy back for 20percent of market cap would take a very long time.
And so those little A trades are now replaced by large volume O trades. :)
Share price calculated to remain the same after consolidation.
So , after consolidation, same sp but less shares.
Say 1000 shares consolidated to 850 shares.
Same sp but hold 150 shares less( but compensated by the special dividend).
Your share holding after consolidation is not as much in sterling but you have a dividend to compensate for this.
So you do not win either way - if the sp stays the same.
Unfortunately, the sp usually drops. So you start scratching your head. Is this smoke and mirrors and you ask: why is it important to keep the sp the same?
Thank you everyone who responded about saye let's hope we have a good year keep safe
After reading the copious dialogue on all of this am i looking at this too simply ?... SD say 51 per share..then Consolidation. I don't think that 51 p is in the current share price plus after consolidation you still have the same percentage of the company you had before plus the dividend. If so that's win isn;t it ? Why on earth did they not opt for the tried and tested buyback...heck companies borrow money to buy their own shares...Tesco are in the unique situation of not having to do this. They are obviously comfortable with the current debt liabilities or else they could use the sale money.
If share price remains the same after consolidation, those on SAYE able to buy the shares at the SAYE option price e.g. Dava at £1.51 would benefit from the normal dividend as dividend yield % will increase due to less no. of shares in the market. So instead of ~4% yield, it's more like ~5% yield after consolidation. Of course this assumes that the total normal divi amount the company pays out stays the same. There may be a clause in SAYE saying the option price is prior to any consolidation, and option price may change after consolidation, better check this out.
Thanks. That makes it a lot clearer.
Angola
The RNS clearly states that the consolidation will follow the issuance of the Special Dividend.
Not that it matters, the Special Dividend is £5 billion divided by the number of shares in existence.
Dava,
Apologies, finger trouble.
I would suggest that you do take independent advice on the matter of SAYE. The reason for this is that, although I have checked the small print as far as I can, I have yet to see anything that says the consolidation will affect the £1.51 price - that stands. Same with the current £1.98 price. That is not to say that a clause doesn't exist, I just haven't seen it.
I am not accusing anyone specifically on this board but, for some time, every October, without fail, you would get unscrupulous posters coming on trying to get colleagues to sell their shares at the wrong time i.e. cheaply. Never ever trust anything that anybody says on a forum such as this. Always do your own research and make enquiries.
Dava
I would suggest that you do take independent advice on the matter of SAYE. The reason for this is that, a
Chelwood,
I can't disagree with your comment. The thing that has come out of the pandemic is that many of us (though not all of us judging from some board comments (yes, LLOY, I am referring to you)) have rediscovered the important things in life. Our families and friends. Hugs. Talking to people. Charity. Helping your neighbour. Nature. Exercise and many other positives (I am not overlooking the negatives).
Regarding the special dividend, share price and consolidation. I am not concerned about most people on here, they are experienced and know the score. Many shareholders are colleagues who have invested in the company as a form of tax efficient savings (shares are purchased at a discount or ex tax) but are unaware of the ramifications of the upcoming events. These people I do care about. I have written to various Directors to ask for a communication to be sent to colleagues explaining matters. These matters are of great importance to them.