Member Info for MrMath

"what is the equation for the future disposal of the residual /reduced holding with regard to gain"

Your original acquisition costs are reduced by the amount returned to give the acquisition costs of your consolidated holding, which becomes the figure to use for future calculations.

It is worth noting that if your average cost per share before consolidation was more than 4.01624 then the redemption of the B shares would actually cause you a capital loss.

For shares held outside an ISA or SIPP
your capital gain from the returned capital due to the redemption of the B shares is

1.0169n(1 – u/(1.0169 + 0.76q)),

where
n = number of shares owned before consolidation;
q = 3.9465, the share price at close on Monday 16th May (first day of trading after consolidation);
u = Your average cost per share (expressed in pounds) before consolidation

You have a CGT allowance of £12,300 for 2022 to 2023 and so if your total gains don't exceed this for the current financial year you'll have no capital gains tax to pay.

Barclays were terrible for paying dividends on time when I was with them. Sometimes they arrived up to two days late.

Barclays also paid things late when I was with them, it was one of the reasons I switched to HL.

"They used to have broker reports, averaged broker prices, details of recent trades, trade levels for the day etc etc - all gone now"

Agree with that Jim, they have definitely 'dumbed down' their service but I was forced to change from Barclays when the latter's service really hit rock-bottom a few years back. At least with HL I get to trade when I want too, even though they are on the expensive side. It's a shame you can't get the service that I once enjoyed with Charles Schwab.

I split the difference and purchased 12%. As regards the rest, waiting to see what happens ...

Yes, it was an online execution. Was getting quotes from the 8pm starting gun but got offered over 3.93 initially, waited a bit and got 3.91.

I'm with HL. They seem to have things under control.

Just bought some more at 3.91. Thanks market!

HL offering me 3.9375 to buy at the moment.

You can still trade on HL.

Buying more before people get their heads around what's happened.

"I sold out a couple of weeks ago @4.41 as didn't want all the complications and with a view of buying back again"

I considered that option too. Likely, quite a few had that plan which is another reason to expect a price rise on Monday - other worlds events notwithstanding!

I'm expecting the SP to rise on Monday in anticipation of people buying back the shares they 'lost'. Although, of course, most people won't have their returned cash until some days later.

If the SP remains at 4.074 on Monday, you will actually be slightly up.

Suppose you have 10,000 shares then your holding on Friday was worth 10,000 x 4.074 = £40,740.

But on Monday you will have 0.76 x 10,000 = 7,600 shares, which are worth 7,600 x 4.074 = £30,962.40, and your returned capital (actually returned on Thursday 19th with HL) is worth 10,000 x 1.0169 = £10,169.
Now £30,962.40 + £10,169 = £41,131.40, an increase of £391.40 from what you had on Friday.

1.0169/0.24 = 4.237

Of course, the right-hand figure is of interest only if one assumes the pre-consolidation and post-consolidation prices are more or less equal. Also, this basic calculation ignores the relatively small effects of stamp duty and dealing costs when reinvesting. Nevertheless, it's an interesting way of looking at things. There are no free lunches but there maybe a few nibbles.

If it gets to £2 I will be selling the wife to top up :-)

Units to be expressed in pounds, not pence, in the formula I posted.

Your capital gain from the returned capital due to the redemption of the B shares is

1.0169n(1 – u/(1.0169 + 0.76q)),

where
n = number of shares your currently own;
q = Share price at close on Monday 16th May (first day of trading after consolidation);
u = Your current unit cost (average cost per share).

Not sure how any fractional share entitlement is treated - sometimes fractional entitlements get donated to charity!
But, anyway, they will make close to zero difference to your capital gain.