Lambeth BS windfall for members

michaels

Any idea how the cut of date of 31 Jan was decided and whether it can be challenged?

I ask because I remortgaged with them on 2nd March and the 400 quid would really add the sugar to what was already a sweet deal ;-)

ReportInvestor

It coincides with the Lambeth financial year end.

And no, I'm afraid it can't be challenged. The board decides. They could have said windfalls will go to those who were members in 1980 - except they wouldn't get enough votes to pass the resolution.

s_e - what a coup :T !

mariegriffiths

steady__eddie wrote:

It would be ironic if I did receive a windfall from them because I transferred my I.S.A. from Staffordshire which entitled me to that "windfall" to Lambeth !
Perhaps it's a lucky I.S.A. ?
If it works this time, for a small fee, I'll divulge where I'm transferring it to next.

How did they handle the tax on your windfall for your ISA at the Staffordshire?

ReportInvestor

It wouldn't have been paid into the ISA.

ISA money has to come directly from you and paying money into ISAs would mean Inland Revenue time limit rules would be broken in most cases.

The Staffs payment, by cheque or to another account, would have had basic rate tax (20%) already deducted and the gross amount also attracted a further 20% tax if you were a higher rate taxpayer.

Mutual takeovers of other mutuals are a boon for Gordon Brown.

Demutualisation windfalls, on the other hand, have been classed as capital gains (and therefore there is no tax to pay for the vast majority because of our £8K+ CGT annual allowance).

If the societies decided to pay out windfalls to children, that would mean less tax for Gordon and more for members and their families .

steady__eddie

As Reportinvestor correctly stated, I received a cheque via Gordon.
I wasn't particularly perturbed, it's all going to a good cause, isn't it ?

mariegriffiths

Thanks for the reply regarding the tax situtaion.
Maybe we should press for the building societies to be taken over by banks rather than other building societies, maybe there is government pressure for the later. Having just donated money for "Race for Life", I prefer to choose my charitable causes myself rather than Mr Brown.

ReportInvestor

Another quirk of past BS mergers

If you were getting your interest tax free, you will probably still have to submit another R85 form to get your windfall tax free.

Gordon just happens to be the patron of the Building Societies Association :rolleyes: .

boltonangel

i work for a building society and we have a policy where if we are taken over any windfalls that would have been due to members joining after a certain date are assigned to our charity of the year.
this policy would not be waived in any circumstances.

Edna_Bucket_2

What nonsense! Or what naivety!

You are not a Director of the Society I presume?

If you ever found yourself in that situation where your Board needed a 75% vote on a takeover plan they wanted to go through, I can assure you that the signaway would be consigned to the dustbin of history faster than you could say "Building Society Director level carpetbagger."

boltonangel

Edna_Bucket wrote:

What nonsense! Or what naivety!

You are not a Director of the Society I presume?

If you ever found yourself in that situation where your Board needed a 75% vote on a takeover plan they wanted to go through, I can assure you that the signaway would be consigned to the dustbin of history faster than you could say "Building Society Director level carpetbagger."

oh i'm sorry - i didn`t realise you were a building society exec.

i thought i may just be able to have an opinion - but obviously not when there are people like you who are ALWAYS right.

it must be great living in your world.