Standard Life Shares

ReportInvestor

If you received 1,000 free shares at flotation and purchased 6,000 more at £2.185 then you would be in the (un)fortunate position of paying some capital gains tax if you sold the lot now and had no losses to offset the gains.

£3,180 gains on the free shares +
£6,000 gains on the additional purchase =
Approximately £9,180 gains against an annual CGT allowance of £8,800

so in this example CGT could be payable at your top rate of income tax on ca £380.

And in this case 5% bonus shares could add more than £1K to your capital gains in July if the price holds or rises.

If this applies to you then selling your shares in two different tax years is one way round it.

But there's no law against continuing to hold, no annual management charges and no CGT to pay on "paper gains" !

Yorkshireman_3

Bad day for most stocks today -- wht happened??

david69_2

Standard life lost 18p today or about 5% I'm not bothered I'm in it for the long term.

EdInvestor

General inflation panic emanating this time from China. Annual event.

multimillionaire

No-where near my paperwork for the holding to check...however....

When exactly in July are the bonus shares being issued please ? Memory like a fish at the moment !!

£2.80-ish currently - - eek ! ....still all good!

gt94sss2

multimillionaire wrote:

No-where near my paperwork for the holding to check...however....

When exactly in July are the bonus shares being issued please ?

10th July..

Regards
Sunil

full-time-mum

gt94sss2 wrote:

10th July..

Whilst we are on the subject of the bonus shares, I know sod all about shares and we've ended up hanging on to our standard life ones.

I know it is impossible to know what will happen in july and it is a complicated issue but what, in general, happens in these type of senarios?
Is there likely to be a large number of shareholders who are just waiting for the bonus shares to sell and will flood the market?
If so, what is likely to happen to share prices?

If we decide we want to sell our shares at some point after the allocation, would we be better off selling immediately or waiting for the trading to settle down again?

I know there are no definitive answers, but some knowledgable information would be greatly appreciated.

Thanks.

gt94sss2

full-time-mum wrote:

Is there likely to be a large number of shareholders who are just waiting for the bonus shares to sell and will flood the market?
If so, what is likely to happen to share prices?

Yes, its quite likely a number of people will decide to sell once they receive their bonus shares.. in which case the share price will probably go down - at least temporarily.. as there will be more sellers than buyers..

If we decide we want to sell our shares at some point after the allocation, would we be better off selling immediately or waiting for the trading to settle down again?

Probably better off waiting for a while..

Regards
Sunil

david69_2

nice to see that these shares have recovered well this week

mleonard79

david69 wrote: »

nice to see that these shares have recovered well this week

I was thinking the very same thing myself - hopefully it was just a temporary dip caused by the Chinese markets and it'll go up steadily from here on! Fingers crossed anyway :T