Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"i thought declaration was 28oct? with ex divi dec"
This fits in with
https://www.investorschronicle.co.uk/company-news/2020/05/07/bt-axes-dividend-till-2022/
"BT axes dividend until 2022
The group expects to resume payouts in 2022
May 7, 2020
By Lauren Almeida"
Time flies.
Commission!
"Whilst bookings are now back to 2019 levels, commission levels1 in the four month period are 30% above the levels of 2019, largely due to the impact of a change in mix led by more hotel bookings, and fewer lower margin flights.""1 Ten's revenue from its supplier base, such as hotels, airlines, and event promoters which sometimes pay commission to Ten constituted £5.5m (12% of Net Revenue), for the 2019 financial year (as reported in the 2019 Annual Report and Accounts)."I knew it, they get kickbacks when the members make a booking.It's easy to work out. Try booking a hotel direct with the hotel, on their website, to get the price,and then through TEN. Cancellation policy maybe different, though.They can sweeten the deal by a free glass of champagne with a meal.At least the business model is as expected. "We will fleece everybody to make a profit."Quite promising for a shareholder.
Never caught anything fishing for years.
Went to Homer, Alaska. They have boats that take you out.
They even bait the line for you. You get a 3 foot halibut in no time at all.
It's almost like a diver is down there hooking the fish for you.
Limit of two fish per customer, though.
Waiting for a big halibut.
https://www.peninsulaclarion.com/news/homer-chamber-of-commerce-ends-halibut-derby/
No, no, no, let it fall, so daddy can fill his boots at £2.83, like 19th September 2020.
The idea is to get £50k+ worth in an HSBC S&S ISA.
You pay £40.20 a year for an Investdirect dealing account, and get the S&S ISA for free.
Receiving dividend costs nothing.
So, buy 10,000 shares at £3, that's £30k, then goes up to £5, so it's £50k.
Let's say it goes back up to £5 because of 5% dividend, that's £2,500 dividend a year, tax free.
That's the kind of money tree I want for Christmas.
https://www.theguardian.com/business/2021/aug/14/warmth-from-the-earth-and-air-could-heat-pumps-replace-our-gas-boilers
"The RHI pays out £6,000 in quarterly instalments over a seven-year period to help defray the costs of heat pumps. Ministers are reported to be considering replacing it with a £400m boiler scrappage scheme, which would offer £7,000 grants.
Heat pumps are already popular, but the cost is many times the price of a gas boiler, starting at £6,000 for an air source pump; for a ground source pump the price could climb from £10,000. And many homes need extensive insulation work before they can be installed."
Similar business model:
We put in heat pumps for you, at little cost to you, but you sign over the grant money, and maybe pay ongoing rental for the installation.
Obviously, you sell the future cashflow for cash now, to pay for these £10,000 per household upfront costs.
The only problem is, how do you get all these air-con engineers to work for you.
Cowboys will sign up left right and centre.
Let's face it, unless you are extra rich, nobody is going to fork out £10,000 for heating.
You would just buy an oil filled heater for the living room, and maybe one for the bedroom.
If the government is going to hand out £7,000 per household, GRAB it!
We’re making some changes to our Terms
HSBC Jade Account
We’re changing our rules on who can apply for an HSBC Jade Account. Right now, to qualify for an HSBC Jade Account, you must have an existing HSBC Premier Bank Account and pay your annual income into that account. You must also have either:
• savings and/or investments of £500,000 or more with HSBC in the UK; or
• a relationship with HSBC Private Bank in the UK.
We’re increasing the total savings and/or investments required from £500,000 to £1,000,000. We’re also removing the requirement to hold an existing HSBC Premier Bank Account. Existing customers with any HSBC bank account, or new to bank customers, can now apply. You’ll still have to pay your annual income into your HSBC Jade Account.
Affluent is no longer good enough.
Only real HNWI will do.
Jade was the poor man's Private Bank account, for those without £2million to spare.
In Asia, the minimum was US$1m, so around £700k, now they are upping the Ante for the UK.
Need SAR to hit 40p, just so I can keep my free perks.
The question is, are you prepared for it?
If you won the Lottery, say £1m, do you pay tax for it?
I don't think so, because winnings from gambling is tax free.
You got lucky if you didn't know either way.
I have been musing what would happen if my SAR shares were not in an ISA.
If it shot up to £3m, which is the minimum for a Coutts Private Bank account,
and I jumped at it. A year later , the capital gains tax bill is roughly £500k.
E.g. You bought at 3million shares at 1p for £30k, sell at £3m for £1.
The gain is £2,970,000 = £3m - £30k
At 20%, the CGT is £594k = £2,970,000 x 20%
If I would rather die than give up the Coutts account, I cannot withdraw £594k, so I have to sell a Buy-To-Let property.
A £1m BTL is generating rental income perfectly nicely, with the expenses offsetting the rental income, and even enjoys some capital appreciation. Now, I have to sell it, which incurs 28% (property) capital gains, so £200k+ in CGT. So, I pay
~£800k = £594 + ~£200k to HMRC in CGT, leaving me with £200k, and no regular income from the BTL. and no capital appreciation.
Even if the SAR shares were in an S&S ISA, the trap is now I can't spend it!
I have to keep £3m in the Coutts ISA, otherwise I don't qualify for the minimum.
Let us say the £3m ISA generates £100k a year (charges, Coutts ain't cheap) it gets me a few weeks rental on a yacht.
At that price, I'll be lucky if it has a jacuzzi, and more than likely it's self-service, no crew.
"The most commonly quoted figure for membership in the high-net-worth club is around $1 million in liquid financial assets. An investor with less than $1 million but more than $100,000 is considered to be "affluent" or perhaps "sub-HNWI." The upper end of HNWI is around $5 million, at which point the client is then referred to as "very HNWI." More than $30 million in wealth classifies a person as "ultra HNWI." "
US$5m = £3.6m
So, a promotion from affluent to bottom rank HNWI doesn't even get you a Coutts credit card.
METRO Bank has a £1m minimum for a Private Bank account, but who wants that?
"Whilst I would love to know who they are , for the time being I am content in the knowledge that they have seen the potential upside and have decided to followed my money , I will now follow theirs ."
"The Million Pound Bank Note"
Henry Adams has a million pound note, and he buys shares in a gold mine, every man and his vicar pile in.
Starring Gregory Peck.
https://www.londonstockexchange.com/stock/SAR/sareum-holdings-plc/company-page
Click on duration: Today, 1 Week, 1 Month, etc.
"To me it seems peculiar that all 3 have decided to remain anonymous... With not one choosing to 'break rank'?"
Three? The HNWI, his wife, and his mother, you mean.
Or, the HNWI, his sister, and his good for nothing brother-in-law.
"Been living outside UK for seven years so as a non resident I couldn't buy an ISA.
Need to get this sorted asap."
Fairly sure non-residents don't pay UK Capital Gains Tax.
20 years ago, the trick is to get a job in Brussels, declare yourself non-UK resident, sell your assets, pay no CGT, and sneak back in when the coast is clear. I think they (HMRC) put a stop to it somehow. Now you have to sever all ties, barring killing your parents, to prove you are really non-UK resident.
Just wondering. When people say life changing, what is the number?
I am not going to starve for retirement anyway, so a little extra is not really life changing.
I know already if I had a £1m in a SIPP, and I have to pay tax every draw down,
I will be grumbling all the way to my grave.
On current trajectory, it looks like the state pension and company pension will gobble up the Personal Allowance, once they start. This means any draw down from a SIPP will incur income tax, possibly 40% in a good year.
The goal now is to build an ISA with about £1m in it, so I can take any amount I want to tax free.
It's not life changing, in the sense that it has to last a long time, so I can't spend it all at once,
but it's tax free, which will contribute to my happiness a lot.
That is what I call life changing: happy vs. grumpy.
"ICL that is bed and breakfast deals ... I think you will find that bed and ISA deals are different .... but to get qualified advice .... go to a registered tax adviser ... tax issues are a minefield"
With a steady as she goes share, you just have to sell them over a number of years, using up the annual CGT allowance as you go.
With SAR, we are expecting a takeover, which abruptly crystalises the gain.
If you panic, you can very well do some rapid buying and selling.
If you don't understand the 30 Day Rule, you can easily get into a tangle.
The 30-Day Rule of 1998
"A bed and breakfast strategy allows investors to minimize the amount of capital gains taxes they must pay. The 30-Day Rule of 1998 banned the practice of "bed and breakfasting," forcing investors to wait 30 days before being allowed to repurchase the security they had just sold."
Before 1998, the CGT annual exempt allowance was around £6,000.
So, if you had say Lloyds shares outside an ISA/TESSA/PEP, which grew in share price, you would lock in the gain by selling on Monday, then buying back on Tuesday, aka bed and breakfast.
E.g.
You bought 10,000 shares at £2 in July 1996 for £20,000
You sell 10,000 shares on 1st July 1997 at £2.60, for £26,000.
You have crystalised £6,000 in capital gains in the tax year 1997/98,
but it is within the exempt allowance, so you pay NO TAX.
You buy back 10,000 shares next day, 2nd July, for around £2.60, so it's £26,000, plus the 0.5% stamp duty £130.
With a little dealing charge, the base for CGT purposes is now £26,150 for the 10,000 shares.
You repeat the operation in July 1998, selling at £32,000, the gain is
£5, 850 = £32,000 - £26,150
Yet again, the gain is less than the exempt amount £6,000, so you pay no tax.
What the heck is going on here, all these peasants getting away with NOT paying CGT!!!
so the Inland Revenue clamped down on it, with the 30 Day Rule.
So, if you THINK you can sell SAR on 3rd August (2nd is Bank Holiday),
and then buy them back on 4th August, and make use of the £12,3000 allowance for 2021/22,
you will have a nasty surprise.
Let us say you sell on 3rd August for 8.8p,
and buy back on 4th August for 9.1p, the 30 Day rule will force you to match the two trades,
so you bought at 9.1p , and sold at 8.8p, incurring a loss of 0.3p . Your original base price has not changed one iota.
The matching will not happen if you buy back 31 days or more later.
So, you sell on 3rd August for 8.8p, then buy back on 1st September for 40p!!!!
It is possible to do it, but you need to have lots of cash.
So, you sell say, 500,000 shares of SAR in your account, and simultaneously buy 500,000 shares in you wife's ISA and dealing accounts with cash you already have. Four days later, your sell trade settles, and you can pay her back.
Not ideal, really, because you lose on the offer/bid spread.
"I posted this on the other place. But 1802 is worth 50p to £2 on its own as its unique."
All I can think about is the rhino bottom pounding, by the HMRC, as was so eloquently elucidated by Tom Cruise in The Firm.
Hence all my SAR shares are safely ensconced inside an ISA, as it sped past 5p.
Would have been less, except for "You need to fill out another ISA application form, for THIS tax year!"
Now consider the difference between having the SAR shares inside a SIPP or an ISA.
Let us say you bought 1million shares at 0.6p, for £6,000.
At 50p, that's £500k.
Inside an S&S ISA, you can withdraw as much as you want to, and NO TAX.
Inside a SIPP, any draw down will be 25% tax free, but 75% taxable.
You THINK 20% income is not so bad, but by the time you remember you have other income, now and in retirement, and that's how you have been eating, keep warm, and drive a car, you suddenly realise you will be paying 40% tax on that 75%.
Even worse, if SAR actually goes to £2, 1 million shares is worth £2m.
The Life Time Allowance £1,073,100, and Rishi Sunak might reduce it.
55% tax for draw downs!
No amount of KY Jelly will help.
Isn't that the plot for Mission Impossible II?
No Ethan Hunt this time to spoil the broth.
The clue is, who acquired lots of options/warrants in Pfizer before COVID-19 broke.
Nobody gets the death sentence any more.
What's next? Super fungus that no fungicide can kill. Then, SUPER Vagisil.
"In the epic Mahabharata, Yudhisthira goes looking for his missing brothers, who went searching for water. He finds them all dead next to a pond. In despair, but still parched, he is about to drink, but a crane tells him he must answer some questions first.
Crane asked last question to the Yudhisthira :
“What is the greatest wonder of the world?”
“Day after day, hour after hour, countless people die, yet the living believe they will live forever.” Yudhisthira replied.
Everyone has to die because everyone is fully under the control of material nature, yet everyone thinks that he is independent, that whatever he likes he can do, that he will never meet death but live forever, and so on. So-called scientists are making various plans by which living entities in the future can live forever, but while they are thus pursuing such scientific knowledge, Yamaraja, in due course of time, will take them away from their business of so-called research. This is the most wonderful thing in this world."