Share questions (selling & tax/passing on implications)

bad-head-day

I have 1042 shares each of GKN & BIL which I bought through a company sharesave scheme. I had the funds deducted from my wages each week at a rate of £42.50. Of this amount £32.50 was from me & £10 was from my best friend. He gave me the £10 cash per week (in lumps every now & then up to the full amount).

I (we) would like to sell these shares & I've read the advice link to the left hand side of the forum which indicates that hoodlessbrennan would be the best value method of sellling.

I have two initial questions:

(1) GKN posted their results on 28/2 & BIL a few months before. If I sell now will I still receive my dividend for that year? This is significant.

(2) Are there any any important points I need to know about receiving the monies & passing on my friends portion to him? I was just going to give him cash.

Many thanks.

bad-head-day

Bump, I've never bumped a thread before but I could do with any available advice

BJC_2

b-h-d.
It is my understanding that the results should have stated a "Divi Date". If you hold on that date you will get the divi, if you dont, you dont.
How are your shares held (electronic (CREST) or certificate?). There are many dealers/Banks/IFAs that deal shares for you, they all charge.

ReportInvestor

bad-head-day wrote:

(2) Are there any any important points I need to know about receiving the monies & passing on my friends portion to him? I was just going to give him cash.

You would be responsible to the Revenue for all capital gains and income from the shares.

But you have an annual capital gains tax allowance of about £8,500 before any tax is owed - so there shouldn't be a problem.

EdInvestor

bad-head-day wrote:

(1) GKN posted their results on 28/2 & BIL a few months before. If I sell now will I still receive my dividend for that year? This is significant.

To get the divi, you need to be holding the shares on the day they go "Ex dividend" which in GKN's case is April 19, so don't sell until after that. Payout date is May 17 ( you don't have to hold the shares until then though, as long as you were on the register on the ex-div day.).

Divis are tax free for basic rate taxpayers, so as long as your capital gains (not the total share sale value) don't exceed your 8.5k annual allowance, should be no problems on the tax front.

bad-head-day

Thanks or your advice, everyone. BJC I have certificates which were sent to me by Lloyds Sharesave after I finished saving & took the share option.

BJC_2

If you visit the LSE web site (http://www.londonstockexchange.com/en-gb/) you can find out what local brokers you have. They will then sell the certificates for you, an average fee will be around £15.