Vodafone share consolidation

[GoneBananas]

Shares are in my SIPP, should I leave them as C-shares or request them as B-shares? Thanks.

[anonymous-user]

I'm trying to get my head around what it means!
A simple explanation would be appreciated if anyone has a link?

[afrochicken]

Jimboka, Vodafone's Verizon transaction section Have a read of the shareholder guide for more details.

B shares are taxed as capital gains, C shares are taxed as income.

I don't know what the implications of either option are for shares held in a SIPP. Aren't they exempt from CGT and income tax?

[Nimbus]

same problem here...

so far I cant see any benefit to me at all, and I'm in effect being forced to sell half my shares...

As I see it, I get...

some cash
some verizon shares
1/2 my original holding back..

So according to the documents I've been sent I should be 'no worse off'...

Except I have no real choice, and am almost certainly going to have pay a load of tax, and the hassle of some US shares that I dont really want, and cant sell for 5 years if I want them to be tax free.

Great ! How is that a benefit to me

At the moment I am tempted to sell all my matured sip shares before the deadline. At least that way I know what I'm getting, and afaik I wont have to pay any tax on them. But that still leaves me a shed load of unmatured sip shares that I cant sell.

I'm not very impressed with the whole thing really

Unless I'm being thick and missing something ? It seems like no benefit at all

[anonymous-user]

That's what I was thinking. I'm sure I read though that the 'new' Vodafone shares would bounce & only be around 25% down on the current price. So in effect, the 'cash' is a bonus. I may have dreamt that though.
If that's not the case, where is the money going?

[Nimbus]

Jimboka said:

That's what I was thinking. I'm sure I read though that the 'new' Vodafone shares would bounce & only be around 25% down on the current price. So in effect, the 'cash' is a bonus. I may have dreamt that though.
If that's not the case, where is the money going?

Firstly, I'm no shares/finance/tax expert, I'm just a shareholder.. and my comments are based on reading all the stuff Voda have sent me, rewardtalk page/ and the internet, so dont take it as gospel.. anyhow..

Selling the Verizon stake, means that the value of Vodafone shares will be reduced. To counteract this, they are halving the number that you hold by 50%.

The idea is that by reducing the number of shares, ( they are in effect reducing your holding by 50% ), the remainder should 'bounce' back to where they were before.

So yes, the shares will be back about where they were, but you will now only hold 1/2 of what you had before.

To compensate for this, you are getting cash and verizon shares.

The value of this is combination is supposedly 'about' the same as you had before.. and of course, you will probably be liable for some tax on the cash..

The only good thing I can see from this, is that if Voda shares were a little overvalued before, because of the reduction in numbers of shares out there, they now arent so much overvalued.

But I cant see how giving us cash ( if I'd wanted to sell my shares I'd have sold them myself... ), and some shares in a US company, that will be a PITA to sell/collect dividends on, is a great deal.

Sure for the big city companies, who have them no doubt tied up in tax efficient schemes, its probably good, but for the small investor it doesnt seem good at all..

But.. as I said at the start, I'm no expert, maybe I'm missing something, but at the moment, it seems to me that I'll make more by selling the shares I have that have matured in the sip scheme, ( share price is highest its been for years ), than I will collecting the cash/verizon shares, given I'll have to pay a load of tax on them..

As you might guess, I'm not happy about it at all

If you are an employee and are in the sip scheme, there are some fairly good pdf explanations on the rewardtalk pages, well worth a look, but they are sketchy in the extreme on the tax implications, which at the end of the day, is the critical thing

Edited by Nimbus on Thursday 19th December 20:15

[fake7]

I have £1k of shares in my ISA that are now worth about £1300, so I'm assuming that any gains will still be in the ISA and tax free. But I'm not sure what to do. I'm tempted to enjoy the ride and see it through to the end just to see what happens, i've never been in this position before. But i've got some questions...

Will the gains be tax free in an ISA?

Is there a cut off date to sell what i have now?

If I see things through to the end am I going to be stuck with some Verizon shares on the US market, or will they be saleable on the UK market?

I'm thinking the sensible thing to do would be to sell soon and bank the profit, but the price is still edging up so I've still got them.

[Nimbus]

afraid I don't know what happens if your shares are in an isa..

it appears that your uk stuff will be contained within it, so tax free, but the verizon shares will be outside as they are US based..

there seems to be some good info here tho..

http://www.iii.co.uk/investment/detail?code=cotn:V...

[mccrackenj]

I have a small no. of Vodafone in my ISA with Hargreaves Lansdown.

I still haven't received any paperwork whatsoever.

Should I be concerned?

[fake7]

mccrackenj said:

I have a small no. of Vodafone in my ISA with Hargreaves Lansdown.

I still haven't received any paperwork whatsoever.

Should I be concerned?

same here with ii

I'm probably going to sell in the New Year, watching the price still edge up

[GoneBananas]

Bumpty bump.

Just in case someone knowledgeable about shares is reading this forum.

I just phoned my SIPP provider and they're not sure of the answer either. They suggest I hire a tax consultant to tell me the answer.

[V41LEY]

Money due this week ?
Respray here we come