davieG Posted 14 December 2011 Posted 14 December 2011 I have some Santander shares from when they were the Abbey National. When there's a dividend to be paid I get 3 options 1) Sell off the rights to market to Santander get a fixed amount of cash , 19% spanish withholding tax 2) Sell the rights on market and receive cash, no spanish withholding tax 3) Hold my rights and receive shares, no spanish withholding tax. Anyone care to offer some free advice?
davieG Posted 14 December 2011 Author Posted 14 December 2011 What is your investment profile? What's one of those? The shares were dished out when the old Abbey National went public, that's all I know, I got some Standard Life ones as well, I'm not desperate for the cash normally I just let them put a divi in my bank account and move.
Jon the Hat Posted 14 December 2011 Posted 14 December 2011 If you are a UK taxpayer and suffer Spanish Withholding tax that can be deducted from your UK tax bill on the dividend, assuming the tax payable is more that the amount withheld. If not, you will be losing 19%, so you can probably rule that option out if that is the case.
davieG Posted 14 December 2011 Author Posted 14 December 2011 If you are a UK taxpayer and suffer Spanish Withholding tax that can be deducted from your UK tax bill on the dividend, assuming the tax payable is more that the amount withheld. If not, you will be losing 19%, so you can probably rule that option out if that is the case. Well I'm am tax payer, just but I'm not aware of it on my tax bill but then I haven't filled a tax form in for about 6 years. It currently defaults to the 1st option.
Steven Posted 14 December 2011 Posted 14 December 2011 What's one of those? The shares were dished out when the old Abbey National went public, that's all I know, I got some Standard Life ones as well, I'm not desperate for the cash normally I just let them put a divi in my bank account and move. Are you looking to turn over your holdings quickly or are you a buy and hold person?
Steven Posted 14 December 2011 Posted 14 December 2011 Well I'm am tax payer, just but I'm not aware of it on my tax bill but then I haven't filled a tax form in for about 6 years. It currently defaults to the 1st option. It depends whether the rights or the shares are at a 19% premium (or thereabouts) to the 1st option.
davieG Posted 14 December 2011 Author Posted 14 December 2011 Are you looking to turn over your holdings quickly or are you a buy and hold person? I just hang on to them hoping that in the longer term they'll increase in value. As I say I only own shares due to share rights issue of organisations going public. I'm not even sure I'm using the correct terminology. It depends whether the rights or the shares are at a 19% premium (or thereabouts) to the 1st option. you've finally lost me there
Steven Posted 14 December 2011 Posted 14 December 2011 you've finally lost me there In simple terms will options two or three be worth at least as much as option 1 before tax?. I would just take the shares and keep them in the hope that they eventually do go up. If you do not sell the rights from option two you will get the shares anyway I presume.
davieG Posted 14 December 2011 Author Posted 14 December 2011 In simple terms will options two or three be worth at least as much as option 1 before tax?. I would just take the shares and keep them in the hope that they eventually do go up. If you do not sell the rights from option two you will get the shares anyway I presume. Well I just assumed that option 2 would depend on the market price at the time so is there any real way of knowing which of 1 or 2 is best. Option 3 means I can continue to forget I have them until I'm desperate or gone and some one else can decide what to do with them
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