Selling Santander Shares and Spanish Tax

arsenalboy

I have £600 worth of Santander shares which I want to sell. The following is information from the Santander website re tax regulations

Why Do Shareholders Need to Complete the Spanish Tax Formalities?
Shareholders who are not resident in Spain for tax purposes, who dispose of their
Santander shares by way of sale or gift and who realise a gain on that disposal are
required by Spanish law to file a tax return (Form 210) and a certificate of tax
residence obtained from HM Revenue and Customs (HMRC) with the Spanish tax
authorities declaring the gain made on the disposal.
The signed, original Form 210 must be physically delivered to the Spanish tax
authorities in Madrid and shareholders will generally have to appoint a Spanish tax
representative in order to do so. A fee will usually be payable for this service. It is

recommended that the shareholder contacts the following tax representative:

Post

: FREEPOST, Spanish Tax Forms (no stamp needed)

Email

: enquiries@spanishtaxforms.co.uk

Phone

: Freephone 0800 0845 210

Website

: www.spanishtaxforms.co.uk

Form 210 must be filed within 30 calendar days of the date of the sale or gift. Even if no
tax is payable, failure to file Form 210 can give rise to a €100 fine, which may increase
to €200 if Form 210 is not filed before a demand has been issued by the Spanish tax
authorities.

These were free shares from Alliance and Leicester many years ago.

These provisions seem very draconian and over the top.

Can anyone give me any advice?

thanks

talexuser

I had around 80 shares from the same demutulisation, the original A+L were in a Perpetual Pep when Perpetual allowed shares, when they stopped I think they went to Reyker Securities to be held in ISA but can't remember exactly - it was some time ago. I just told them to sell when I had a clearout a while ago and transferred the cash to other ISAs. I just assumed whoever is selling took care of any withholding tax etc. Never thought about it again and never heard anything further to this day... I hope they don't bother about small amounts like these

Just_landed

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Just_landed

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digerati

If you sell Santander shares in the UK on a UK exchange (like the LSE) then no Spanish nexus exists so no need to declare anything to Spanish tax office.

If in doubt - ask Santander's investor services department for clarification

spanishtaxformsltd

To clarify, you cannot trade Santander shares themselves on a UK exchange. Instead, what is traded are "interests" in Spanish shares (called CDIs). The underlying shares remain Spanish assets and, as such, a Spanish tax form is required if a profit is made. No tax is payable to Spain for UK tax residents but, technically speaking, a form is required.

This is the legal position but the question as to whether individuals want to conform is obviously a personal one.

arsenalboy

Spanishtaxformsltd, if that is the legal position then presumably I cannot sell them on the LSE whether I wished to or not?

I have just checked and when I received the Santander shares (ex A and L ) they were worth £60 more than they are now, so I will not realise a gain.

But how do I sell them as they are not listed on LSE.

Sorry, I am pretty clued up on finances but have never sold shares!!

datostar

Ex A&L shares are usually held in the Santander nominee service administered by Equiniti. You can sell them through Equiniti themselves or any stockbroker willing to handle them. There are only Spanish tax implications if you realise a gain on the shares. BTW, they are listed on LSE as LON:BNC but treated as Crest Depository Interests so no certificates are issued. CDI's can be bought and sold.

Mark300zx

I have a small amount of santander shares and would like to sell them, but have been told by santander that only themselves or equiniti can sell them because they are electronic shares!

Is this right or can any broker sell them?

00ec25

Mark300zx wrote: »

I have a small amount of santander shares and would like to sell them, but have been told by santander that only themselves or equiniti can sell them because they are electronic shares!

Is this right or can any broker sell them?

sadly they are correct - this catches out a lot of people with demutualisation shares who did not get paper certificates. The electronic shares are held in the nominee account operated by the registrar (Equiniti). If you want to sell them outside of Equiniti you have to transfer them to either another broker electronically or convert them to a paper certificate. In either case Equiniti charge a fee for this "service", and, when your new broker sells them, they will of course also charge dealing costs

therefore equiniti know they have you over a barrel - either sell through them at their charges or incur 2 lots of charges in selling them outside equiniti

Wiffies

I'm sorry if I'm dragging up an old thread, but need to sell 100 shares, held as above, but have never done it before and am wary. Do I just ring up Equiniti and ask to sell them?

I didn't buy them. I transferred them when my mother died, as she was offered Abbey Shares.

Sorry to be dim, but have never done it before, but need the cash now, really.

Thanks