Member Info for BlueBiscuit

oh hang on. I think I might have misunderstood. The proceeds from "B" shares are treated as income only if a choice was offered to investors. In this case, there was no such choice hence I assume this will be a CGT event (right ?) -- https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/385141/Special_purpose_share_schemes.pdf

If that's the case, I understand that my cost basis is just reduced by the size of the cash payment... ie I pay a larger lump of CGT when I come to sell.

Hope I haven't confused myself. Does this match everyone's understanding ? thanks.

Hello all. I recently inherited some AV shares, and I've been following the recent corporate actions closely. I think I understand the basic mechanics of the "B" shares scheme, but my question is really about how this give-back will be taxed.

First, how is the cash from the redemption of the B shares treated ? This has bee dubbed a "return of capital", but everything I've read suggests that the proceeds from B shares has been treated as income since 2015.

Second, what happens when I see my remaining shareholding ? In HMRC lingo, what was the "acquisition" cost of my original shares ? If I bought shares worth £1000 and I now have £760,that looks like a capital loss on paper but I doubt the taxman will see it that way. Do I maybe need to adjust the acquisition cost down by 76% ?

Apologies if this has been asked before, I skimmed the threads but didn't see anything that was focussed on the tax implications.

@officemanager - I greatly enjoy hearing a diverse range of opinions on all topics. You may not like what SmallPenguin has to say, but your ad-hominem insults are tiresome and unnecessary. Argue the facts, not the penguin.

"Equity rebellion" ? Ugh, sounds like a load of leftie losers. Soap rebellion, more like.

I imagine it's a bit like the AA meetings you see in the movies. Evraz Anonymous. "My name's Dave, and I lost my shirt on Evraz". "Hi Dave !"

Coggy - spaffed is a delicate way of saying "spunked up the wall" (or in this case, down the drain). It's a delightful word that can be used in all sorts of social settings, from church fêtes to garden parties with minor royals.

Clearly it all depends on how much cash you're playing with, but anyone who spaffed more than 5% on this needs their head examining imho :) The smart thing to do is to size your bet based on your confidence in the outcome. And unless you're on first name terms with the head of the FCA, this one was a pure gamble. Thankfully I only lost 2% (and note I say "lost" - unlike some of the dreamers on the site, I have written off the money already)

Thank you, I didn't realize that EVR itself was trying to coordinate a response on behalf of shareholders. Signed.

Unless their original holding was valued in the hundreds of millions, anyone talking about taking "legal advice" is a nutter imho.

I'd like to hear whatever he (or she) has to say. Who wants to listen to a non-stop circle-jerk about what a wonderful company this is ? Personally, I want to hear a diverse range of opinions so I can make my own mind up.

Oh balls, sorry. Just got that notification from II, I didn't think to check

Not the greatest surprise...

Please be advised that Evraz plc have announced that the Demerger of its coal business, Raspadskayem (RASP), has been suspended indefinitely. This is due to the company waiting for clarification regarding regulatory restrictions following the Financial Sanctions Notice issued on 10th March 2022 and from the Russian authorities on the shareholder rights to dispose of the shares received as part of the Demerger process.

We're probably ****ed. If I get back a fraction of the 30K I sunk into this, I'll be happy. It's been a good lesson for me, in that I woefully underestimated the contagion that takes hold in these days of social media and instantaneous news updates. Once Evraz was tarred as the "abramovich stock" (fairly or not), it was game over.

Index providers now have the challenge of unwinding their EVR allocation as soon as the market reopens. Who's going to take the other side of those trades in this climate ? All that forced selling isn't going to help the price.

Hmm ! I think that's the first time I've read an opinion piece in The Guardian and my eye haven't literally rolled through a full 360 degrees. Who knew they have some competent journalists left ? I have to agree with Mr Pratley, the way this suspension has been handled seems terribly cack-handed.

Agreed, it's pretty tenuous but things are moving quickly and I suspect the govt. may simply want to err on the side of caution. Original link : https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1059989/UK_Sanctions_List.odt

Ah, and here's the original wording from the Treasury website :

Furthermore, ABRAMOVICH is or has been involved in destabilising Ukraine and undermining and threatening the territorial integrity, sovereignty and independence of Ukraine, via Evraz PLC, a steel manufacturing and mining company in which ABRAMOVICH has a significant shareholding and over which ABRAMOVICH exercises effective control. Evraz PLC is or has been involved in providing financial services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine – which includes potentially supplying steel to the Russian military which may have been used in the production of tanks. ABRAMOVICH exercises effective control of Evraz PLC given his significant shareholding and the shareholdings of his close associates who it is reasonable to expect ABRAMOVICH could direct through his close ties with Abramov and Shvidler, as well as his power to nominate directors of the board. ABRAMOVICH is or has been involved in obtaining a benefit from or supporting the Government of Russia, as ABRAMOVICH and Evraz PLC carry on business in sectors of strategic significance to the Government of Russia – namely the construction, defence and extractive sectors.

So, no word of direct sanctions against EVR but I don't think there's much hope for a speedy reversal of the suspension

Or here's one from the Mirror. Not my most trusted source of financial insight, but it'll do the job : https://www.mirror.co.uk/news/politics/uk-says-abramovich-destabilising-ukraine-26434110

This is ominous. Talk that Ambramovich has (via his holding in Evraz) "potentially been supplying steel the Russian military". It's paywalled but if you're quick with PtrSc you can get the gist : https://www.telegraph.co.uk/politics/2022/03/10/roman-abramovich-accused-destabilising-ukraine-supplying-steel/ (there's a similar story in the FT)

I wonder if the suspension may be the start of something more serious. I hold c 10k shares and was hoping for a quick bounce, but I may have been a little optimistic.

There are some awfully ignorant comments on here. All those who think the SP won't fall on the morning of the 10th, you are wrong. If you buy tomorrow (9th), you'll get a share of Evraz plus a claim to a 37p cashflow at EOM. If you buy on the 10th, you'll get a share of Evraz only. Rational investors will value those two outcomes quite differently. Arguments that "it's baked into the price" are idiotic.