Member Info for NMBS

I’m assuming that this message board will be no longer active in the near future. Is there an alternative forum that people are intending to use? Might still be useful to discuss future DCUs etc.

Of course nothing is guaranteed in investing. However, as shareholders we had at least some say in things (albeit small for most). The DCU stuff seems to me to be more akin to gambling than investing. We have to trust that Prax MAY give us something in the future. I admit I don’t understand this stuff well enough to know to what extent Prax have to pass on anything to us.

Sorry, forgot to mention that there is a capital gains tax allowance to consider as well

DiveCentre

All good points regarding DCU valuation. If they can be traded then they must be assigned some baseline value surely? This value will presumably be used for capital gains purposes? No idea what this value would be. But if a facility for trading these was put in place and I were to sell these on day 1 at their initial value then does that mean no capital gains to pay?

As I read it’s one or the other, paid by HUR or, if not, then by PRAX. Could be wrong

I don’t disagree. One often has to make decisions based on incomplete information. I just wish HUR had been more proactive with approaching HMRC earlier to establish the DCU tax position. It’s all a bit crap with the standard response that HUR are not tax experts and you’re on your own on this one. Anyway, I’m not going to worry about it just now. We’ve got a lovely bank holiday weekend ahead and, who knows, maybe HMRC will provide a definitive response on ISAs early next week.

Well my ISA provider has told me nothing about DCU loan notes being an option. What a flipping mess. The whole thing is a complete shambles.

Completely agree @sharvey44. It’s a complete mess and I suspect we won’t hear anything back from HMRC before the court date too. I think all an individual investor can do is estimate the financial impact for the possible scenarios for their own particular situation. So if the DCUs provide nothing then I think you’re basically getting 6.02 p from the dividends. If they provide 6.5p then I think that will be reduced by whatever tax you pay outside of your particular allowance. A right PITA

As the court sanction date has now been set for the 7th June, has anyone had any more updates from their ISA provider regarding the DCUs? I understand that Hurricane and Hargreaves Lansdown have approached HMRC for guidance on this.

Thanks for the update petethetreet. My provider has just flatly stated that the DCUs cannot be held in an ISA. It would seem that there may possibly be some wiggle room. It’s just very frustrating waiting for a response from HMRC on this matter, with the fast approaching court sanctioning date. I suspect many people are waiting on this response before deciding whether to sell or not. The total disregard for the interests of PIs on this is breathtaking in my opinion.

I thought this board was for adults to discuss investments with LGEN?

Do you have a link please?

Well said Oldman45. I too am sick of this polluting the board. Maybe we can start a new thread and copy some of the useful information to it. Or better still move to a new forum/site.

Yes, but other big unknown is a definitive answer from HMRC regarding the tax treatment of dividends, DCUs etc. I know some on here are happy with assurances given by their providers, but I’d rather get this from HMRC. Depends of course on your own particular situation whether this is a factor or not.

Alibi, I too would like clarification that the proposed arrangements provide that the special dividend will be paid within the ISA (assuming shares held there). As you say, this could be crucial to many PIs. It wasn’t entirely clear to me as the dividend would be paid after HUR had been removed from AIM. Have you had any guidance on this or is this your interpretation of the proposed scheme? Thanks

Fair enough ronwoking. You make a good point and it can do no harm to try.

I would also like to thank senseman (and the others) who attended the meeting and put in a great deal of effort on behalf of PIs.

RW, do you think this approach has any mileage? Would the same argument not apply to all companies where a shareholder vote is held? I’m not sure if the HUR vote is any more biased against nominee shareholders than for any other company vote?

The scheme document states that the ‘Scheme Record Time and record date for the Special Dividends’ is at 6pm on the date of the court sanction hearing. The special dividend will be paid within about 14 days after this, which is after HUR shares will have been cancelled on AIM. Is the record time and date rather than the payment date the important thing here and mean that the special dividend will be paid into an ISA/SIPP?

Totally agree that the deal is a complete mess, especially for private investors who are grappling with the tax implications. If, as broomtree has suggested, the 6.02 payment will be paid into an ISA/SIPP that is at least something I suppose. As for the the DCUs it appears there is still a lot of unknowns. It’s difficult to make any decisions when faced with such uncertainty.

Looking for some clarification on timing of any payments for those of us holding HUR shares in an ISA. If this deal is sanctioned by the court, will the shares be immediately delisted and any subsequent dividends, DCU payments be paid outside of the ISA wrapper? So including the initial 6.02p payment? Or will this initial payment be made while still inside the ISA wrapper?

Thanks