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Unbelievable - got this from ii. Mtr really shouldn’t get away with this
« Due to HMRC restrictions on ISA accounts, Metal Tiger CDIs are not considered an ISA-qualifying investment. Therefore,
on or after 1st May 2023 (30 calendar days following the delisting) we will arrange to move your shares to a linked
Trading Account, opening one on your behalf if you do not already have one. »
Really sucks - half my ISA will just be unloaded into a trading account. I could cry.
I believe ii are re-examining their interpretation of the relevant sections of HMRC's rules as they may have have reached an incorrect conclusion. Hopefully we'll get to the bottom of it soon.
In my opinion, I would expect CDI's in ISA's and JISA's will be allowed
Can anyone on here contact Metal Tiger, bigmj ? I've not had much luck, but this is the reply from ii, they're sticking with what they said previously.
I can confirm that the Chess Depositary Interest (CDI’s) are not ISA eligible as this has been confirmed by The Investing and Saving Alliance (TISA). This is due to there not being an individual underlying listing of the share for Metal Tiger on any exchange.
So they've taken their advice from TISA, maybe HL use someone else, unbelievable situation.
Sounds like they are eligible now but won't be as soon as the de-listing happens.. I've emailed MTR to ask for their response.
II say they will move my shares from the Isa into a trading account. If that means it’s a Bed and ISA in reverse and they sell the shares and then repurchase them in the trading account I will be making a huge loss tax free…. What a mess.
Hi all,
The MTR shares are listed on the ASX, which is a Designated recognised stock exchange so not sure why they are transferring the shares out of your ISA. Your ISA Provider may not be able to hold shares in Australia, however, you should be able to transfer your ISA to one that does?
https://www.gov.uk/government/publications/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007-v3
The question I I'm more concerned about is what happens if this share recovers? If shares are sold from an ISA and rebought in a non-ISA account , does the new purchase price become the cost for CGT purposes going forward? For example, if an investor has 200,000 shares in a ISA at an average cost of 21p and these are sold and rebought in a non-ISA at 7p, and then by some miracle the shares get back to 21p, what is the result if these are then sold . Has the investor made a gain of £28k (200,000 x 14p) with a CGT liability, despite having just recovered his original costs?
The point is Shadow that what's being listed on ASX are CDIs not ordinary shares and after the AIM de-listing there will be no listing at all, anywhere, for the shares. According to II that point is crucial and means that the CDIs are not eligible for an ISA.
Have we not still got HL saying that they will remain within an ISA though...?
Does anyone know IGs position re ISAs and MTR.
Yes, theski. As at today, anyway. No further input from MTR yet either.
Bigmj-what makes you think the CDIs will be allowed?
All quiet on the surface. I wouldn't be surprised if there was some frantic action going on beneath the surface tho'!
It’s called the rich …robbing the poor …
Correct - 65% discount to NAV is scandalous. Someone will hoover this up. You could buy the company, wind it up and make a fortune. The gap will close in time. Easy hold
Valeura energy delisted from aim
its listed on asx
its up about 500%
one can only hope
Any news from MTR Keith? HL advised me as follows-
"HMRC regulation states that for a stock to be eligible to be held within an ISA it must be listed on a recognised exchange and as such delisted stock does not fit this criteria.
Delisted stock would therefore need to be placed into a standard trading account.
If Metal Tiger is delisted, our Corporate Actions team will be in touch regarding opening this sort of account and moving the shares across."
I am still not sure!
Why isn't ASX recognised ? Other non UK exchanges are.
Nothing from MTR, theski, and I think on this occasion no news is bad news. When did you get that message from HL? It was last Friday that I posted the reply I had had from HL saying the CDIs were ok in an ISA. It's looking to me like HL were wrong in that message, and the fact that MTR are silent suggests that they ****ed up as well, or just didn't research the point.
I'm not sure what can be done about it . I can't see that HL could be held responsible for anything even if they were wrong initially. The buck has to rest with MTR for hanging private shareholders out to dry. Either they were aware of this problem and went ahead anyway or didn't foresee the problem when it's obvious they should have done.
It seems likely many of us are going to be disposing (ie by way of transfer)of long held shares bought at prices well above the current SP, which is bad enough but if they recover are we going to have a potential CGT liability because of the change from ISA to non-ISA? Can anyone answer that?
Tame, see my post Tues 11.54
Hi again- I asked HL to clarify and...good news..
"I've reviewed the link you have provided with our Corporate Actions team who have confirmed that your holding will be able to remain in your ISA due to the fact it is maintaining its listing on the ASX."
So- I shall ask ii to clarify!
I'm getting dizzy now, all this going round in circles!
It's a definite no from ii