Aviva - share offer

IvanOpinionIvanOpinion Forumite
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Got some information through last night from Aviva. I think it is asking whether or not I want to take my dividends as additional shares or if I want to keep getting the money transferred to my bank account. I assume all Aviva shareholders got this pack, if so is my understanding correct ?

We do not have that many shares (about 400 so what would be best ? Will I still have to pay the equivalent amount of tax if I decide to take shares ?

Thanks for your help
Ivan
Don't waste time on other peoples first world problems

Replies

  • cloud_dogcloud_dog Forumite
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    Have been using their Dividend Re-Investment Plan (DRIP) fro a few years now. They are replacing this plan with the new one. I think (although I'm no expert) the main difference is how AVIVA get the shares. I think with the old plan they used to bundle together the re-investment monies and then buy shares on your behalf on the open market. Under the new plan they are issuing new shares to cover the monies to be re-invested.

    To answer your question "What to do". This depends on your circumstances. Do you want/need the dividend twice a year? If not and you have these shares merely tucked away for a rainy day (like me) then I am re-investing the divi's in shares, just to grow my holding; also if you are a higher rate taxpayer taking the extra shares means you won't have to pay the tax man extra from your divi's and can mange how / when you dispose of the shares in case of capital gains tax considerations.

    cloud dog
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • MJSWMJSW Forumite
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    also if you are a higher rate taxpayer taking the extra shares means you won't have to pay the tax man extra from your divi's
    This bit is incorrect. If you are a higher rate taxpayer, then you will still have to pay additional tax.
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