Member Info for luddite

When IAG paid dividends to UK CDI holders a withholding tax was first deducted in Spain, it is possible to reclaim this tax but if it were an illegal tax do you think that the Spanish would have got away with the crime for such a long time ? There are illegal taxes imposed by various countries for example the Irish impose VRT which is acknowledged to be illegal, the government pays a fine every year to the EU and continues to levy the the tax but no one has ever claimed that Spanish withholding tax is illegal and surely the legal framework is unlike to be much different than imposing a financial transaction tax on share purchases ? So far its only a few brokers seem to have taken it upon themselves to collect the FTT from UK buyers, I wonder if any of them will refund the money should they be proved wrong or will IG and Barclays come after customers retrospectivley, one or the other must be wrong.

'Is the US enforcing the collection of the tax for the Spanish on Wall St? I very much doubt it.'

Probably the same confusion going on for US brokers but the ADR system is even more tightly controlled than CDIs so I have not much doubt they will collect it , I am not 100% certain just 99% but if you can find a loophole I am all ears.

big blue, IAG is a Spanish company listed in Madrid and we can trade them by CDI in London and ADR in New York, there is nothing can be done about this , the Spanish can impose this tax . On the other hand if IAG were a UK based company like BT etc we would be paying stamp duty which at the moment would cost more.

big blue, when you buy IAG in UK you are buying a Crest Deposit Interest or CDI , there is plenty of stuff explaining how this works , its nothing new and nothing to do with trade deals or leaving the EU.

big-blue , its been normal for a long time not just a Spanish thing, I have a few shares in a French company thats been creaming off withholding tax for la republique on dividends for the past 30 years same as is done with the IAG London listed CDI, if its been decided we have to pay this new Spanish FTT there is nothing can be done.

Its the Spanish FTT came in on 16th Jan, lots of info on it from various banks, seems that some large borkers are already charging the 0.2% which I think is on buys only but IG Barclays etc still not charging so it seems there is some confusion about it . The IAG listing on the UK market is a Spanish CDI so they have some control over it even though we do not pay stamp duty. I hate the idea of having to pay it but if it happens I can live with it, the volatility of IAG well covers it and I am not so exact in my trades that I can buy within 0.2% of the bottom or sell at the top every time , getting in and out somewhere in the middle of its range is all that matters, just keep on buying and selling.

Yes here I am hoping to ramp it up, I need a price of £20 just to break even on this so does not seem too much to ask so a price of £30 seems about right to me.

Anapa, I have been reading all the guff printed by various financial companies over the weekend and to be honest not one of them makes it clear wether or not it applies to LSE listed shares but remember when we buy IAG on the LSE its in the form of a CDI which is not the same as buying a fully UK listed share so there may be a way that the Spanish can impose this tax on it in the same way they can impose a withholding tax on dividends, I hope not but I am not convinced at the moment.

ger_paul , you said 0.2% FTT appl;ied from 15th Jan, looks like someone forgot to tell some of the stockbrokers as this morning it is not being charged and I bought without paying it , not that it makes much difference , when I manage to get within 0.2% of a low point is not that often so even if it does come in on the UK listed it does not matter much, maybe it is being applied to those buying on the Madrid market, anyway its time to press the sell button again already.

Hosai it looks like 0.2% on buys, no tax on sales, it will apply to IAG when bought within an ISA or not, I can live with 0.2% it will not put me off day trading it, I rarely buy at the bottom or manage to sell at the top but managed to get near enough a 4% turn today so 0.2% although annoying is not a big deal. Something I would be more concerned about is what Sunak might have to do in order to pay down the debt we are racking up due to furlough etc, years ago UK stamp duty was 1% on BA share purchases before it became IAG and no longer subject to UK stamp duty, I can only imagine he will be looking to screw shareholders savers and investors in whatever way he get away with.

ger paul an extra 0.2% in buying costs should not influence anyones decision to buy or sell, I buy and sell it nearly every day plus hold long ( since BA was privatised) , even for day trading that amount makes little difference when the daily price volatility is many multiples of 0.2% todays rise of nearly 6% means I could ignore a 0.2% cost and most days we are looking at 1% or more ups and downs , very narrow spread , no stamp duty , buy and sell any amount for £6 or less, theres a small handful of FTSE100 shares with similar costs, all worth a punt if you are a gambler.

I made an unexpected trade this morning on IG resulting in a small profit ( not IAG), the share price never came anywhere near my lowball buy price but still it triggered and then sold within a few minutes on a limit , I suspect they had a glitch and hoping they dont cancel the whole transaction.

I expect it will progress down the same way as the £183 million pound fine was reduced to £20million, lawyers start with the highest number they can imagine and then double it knowing that by the time the other side have pleaded poverty the claim gets whittled down to about £200 a customer if they are lucky which would mean a settlement of about £80 million and even that may be optomistic for the claimants. I think probably the market consensus is in agreement with me as there was time today after the announcement for the share price to be affected and so far its gone up so like many other things I have seen over the years which the deramplers have announced would be the end for IAG, its just another mole hill.

I do not see much downside risk from splitting up BA but for selfish reasons I would like the holding company to remain Spanish, a UK listed and domiciled BA would mean I would have to pay stamp duty on buys so it would become slightly less attractive for day trading unless its done by CFD etc which have their own pitfalls , I sold my trading shares at 160 this morning and hope to buy back later, seems like WAMkers price prediction at the beginning of this week never fails to be a contra indicator.

If whatymessy ( whitgates 55 ?) had read his posted article properly instead of just the headline he probably would still not have noticed that the only prediction in the article was ;

'Neil Wilson, chief market analyst at Markets.com, thinks there could be upside to IAG shares given their precipitous collapse.'

I am confident trading IAG at these levels because I believe there is upside so less risk, it may be dog of the year for anyone that held since 31 Dec19 but 90% of my interest is day trading so for me its the best with Glencore coming a close second.

Yep, it has whatymessy clown number ones fingerprints on it.

Whitsgates, I am not interested in reading splurges of cut and paste espcially from the Guardian , where do you think the share price is going up or down thats all that matters. I am finding the scaremonging of the virus crap a bit long in the tooth now, I posted my sell this morning at 169.875, have just bought back again at 167.49 , whats your buy and sell levels for IAG , do you have your own opinions ? I also hope you realise that punters on IAG are hardly the types to be scaremongered to , its not a widows and orphans type share.

Its too early to make a decent guess but I doubt a deal is factored into the the closing price on 24th, I took a punt at 165 on 24th and set a limit sell for 29th of 176 but may lower or increase depending on the pundits views and the FTSE100 at about 7.55am on 29th, I am happy with a 1% or less profit per trade so if it jumps 5 to 7% that would be a good day. Also set a short by CFD at about £2.20 and then move it down trying to catch the top, a 1 or 2% down is enough for me on a short, probability of getting a short right is low but I would prefer it does not trigger at all than risk setting it in the 170 to 180 range and then getting stopped out if it carries on rising and I still think we will see £8 sometime in 2023 so I will not be selling my long term holdings for a long time yet.

... but most of the time Orricle it pays just to guess it right rather than try and figure out a convoluted contrarian thesis , I took an extra punt this morning over and above my normal betting on IAG that the price will go up , I may win this one I may not but on average I win otherwise I would have no money left as I have been betting on IAG for a long time and if I get my short term trade wrong I can wait a few days until it comes right.

Bonevox, No I don't think a brexit deal is priced in, the virus scaremongering is priced in but that influence will now decline as people are realising they have been scammed by the 'experts' and the politicians and the health service.