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etank- the Russians were in Afghan for around 20 years so they are quite persistent, Putin will not want to lose face and so backing down is not really an option
Indeed but if it is an ISA then you do not get the benefit of the capital loss but no tax on dividend if it is income.
If the shares are held in a trading account that is a non ISA account which is what the majority of people will have then absolutely crucial that the special dividend is a return of capital and not income.
How many AIM shares end up being profitable so that it is advantageous to hold in an ISA?
AGE
Geng,
Totally agree - Russia can not win this in the long run.
Not economically and not militarily, as both are interconnected.
Question though therefore how long is long?
However long, any invaded nation will put up years of resistance........there will be a stalemate and negotiation at some point.
That advice is about the tax treatment for AMC and not shareholders!
Remember that if in an ISA or SIPP it will not be subject to tax. DYOR
.."The Company has received tax advice that the Disposal is unlikely to attract capital gains or withholding tax....
yes ive seen that.
Is the special dividend return of capital or dividend income (attracting 50 to 45 percent tax even though you may have made a loss.) If it doesn't attract capital gains, it will attract dividend income tax some will pay tax on the money they receive, 40 percent maybe, and when sell the rest have a huge capital LOSS, ie, lose money on a share and also pay tax on it.!!!!
This for long termers with averages above 3p who are paying tax and not in pension or isa
Well said TDT,
Also Russia is one of the richest countries in the world as far as natural resources go but the population see none or very little of it, just Putin and his pyramid of Oligarchs. They have no chance of holding onto ground in Ukraine they simply don't have enough forces to man-mark the Russian hating Ukrainian population.
I was watching a defence expert talking a while ago and he was saying that in a non aggressive control situation (UN etc) you need 1 solder per 24 of population to maintain control, in an aggressive militia situation it's as many as 1 solder per 8 of population - Ukraine has a population of circa 40M, Putin and Russia have no chance but won't back down, so War will go on for a long time.
TDT,
Great post - puts things into perspective.
From the last RNS....."The Company has received tax advice that the Disposal is unlikely to attract capital gains or withholding tax....
But it was humiliated in Afghanistan as was the West. What you want and what you get are not the same thing.
"He will not let mother Russia, something he holds dear, to be humiliated....."
Putin doesn't hold Russia dear. Russia is nothing more than the vehicle he uses to satisfies his megalomaniac tendencies. He and his cronies have done nothing other than rob the country blind and left the vast majority of its population in grinding poverty. How can a country the size of Russia with a population of almost 145m people have a smaller GDP than the city of New York if it's not being robbed and mismanaged by its successive leaders.
If you look at the occasions when one country has invaded another and tried to retain control of the land it has seized it rarely, if ever, ends well for the invader in the long run.
TDT
From the last RNS....."The Company has received tax advice that the Disposal is unlikely to attract capital gains or withholding tax....
EAG
So when and how do we know if it is structured correctly.
If allready have xxx thousands loss, then get given some of the remaining money back and lose 40 or 45% of that... AS WELL.. then would have to vote no or sell.
There are rumours of the russian special activity ending by negotiation (youtube)
It depends upon how the payment of the special dividend is structured.
If it is structured correctly then it will be considered to be a return of capital if not structured correctly then taxed as income if the amount received exceeds 2,000 pounds and all of the persons personal allowance has already been utilised.
There is a tax credit for basic rate tax payers so should not affect them but for 40% and 45% tax posture it is absolutely crucial that Robin Young has taken tax advice on this.
A friend of mine has shares in both Youngs and Fullers and I recall him telling me about this.
Have a look at Fuller Smith & Turner PLC website to see how their special dividend was structured correctly!
EAG
Thankyou for your previous varied answers, now time has passed do we know for SURE if the special divi cap distribution is treated as income or capital.
You peeps saying you hold large quantities of shares, you could lose £50,000 as the price has decreased from 40p to 2p, then you could receive the divi and give back 40% of it to revenue as divi tax, so a further loss.
if the special divi was treated as capital it could be set against 12k capital allowance, and against any losses, or held to set against future losses.. so I hope somehow this will be treated a capital distribution not divi income.
Im no an accountant so appreciate the real situation from someone who knows more than me.
.. with other companies rns comes out clearly setting this straight....
amc rns could be read either way.
With the new amc will the directors hold on to their present salaries.