Royal Mail Shares

Basil74

Bit surprised to see they've already taken the full amount from my bank account before I've even had it confirmed if I'll get my full allocation... nice bit of short term interest to be gained there for the share holding services if it has been as heavily oversubscribed as I'm hearing!

And for the record I actually do a job share... week on, week off, hence why I can be found posting on here rather than posting letters at 10.30 in the morning!

Pharmer

Can anyone tell me if it would be worth setting up a stocks and shares ISA for this? Also, how would I go about this? I have never dipped my toes in the share-dealing business since my childhood Bradford and Bingley days...

Glen_Clark

Pharmer wrote: »

Can anyone tell me if it would be worth setting up a stocks and shares ISA for this?

Only if you are likely to make more than £10,900 a year in capital gains, or are a higher rate taxpayer.

quinechinoise

This thread was very interesting and helpful - thank you, everyone who posted. I have to say that I *have* applied for shares, so I may just have to keep my fingers crossed! x

Doshwaster

Basil74 wrote: »

Bit surprised to see they've already taken the full amount from my bank account before I've even had it confirmed if I'll get my full allocation... nice bit of short term interest to be gained there for the share holding services if it has been as heavily oversubscribed as I'm hearing!

I suppose that's one of the reasons that there are no trading costs for the application process. They make their money elsewhere.

jollyme

No real reason not to use a stocks and shares ISA so far as I can see. It's not as though you can use that part of your ISA allowance elsewhere

DSA_2

The general advice on here appears to be a recommendation to use an intermediary such as x-o rather than applying direct. Hopefully there is still time to do this, as it is still advertised on their homepage as open for new customers. As I understand it you have to open the account, once open then deposit money, and then once showing in account fill in the online form to request the shares.

As a basic rate taxpayer is there any benefit of applying for an ISA account? Are there any drawbacks? x-o list a £50 ISA closure charge.

I think I am correct in saying that x-o accounts are protected by the UK FSCS so money/shares would be safe with them.

Do you have to pay 0.5% stamp duty to purchase RM shares, and if so do you have to deposit a minimum of £750 + 0.5% to be able to buy the shares?

Presumably the other alternative is to apply direct (and presumably be sent a share certificate) and then transfer them in to someone like x-o without the same time pressures. x-o don't appear to charge for transfers in, although transfers out are charged.

I would also be grateful for explaination of the £20 fee for "attendance at shareholders meetings"? Thanks.

fizio

I've gone for £5k each for me and OH via hargreaves ISA.
See what happens

Reaper

DSA wrote: »

As a basic rate taxpayer is there any benefit of applying for an ISA account? Are there any drawbacks? x-o list a £50 ISA closure charge.

Not really any benefit except if you have to fill in a tax return there is no need to list anything inside an ISA. Or if you have used up your capital gains allowance in the year you sell the shares (e.g. sold a house that you don't live in). As you say ISAs normally have extra charges.

Do you have to pay 0.5% stamp duty to purchase RM shares, and if so do you have to deposit a minimum of £750 + 0.5% to be able to buy the shares?

No stamp duty if you buy at issue, but there will be if you wait until after release and then buy them on the stock market. Yes you have to have the amount you wish to buy deposited as cleared funds on the day.

Presumably the other alternative is to apply direct (and presumably be sent a share certificate) and then transfer them in to someone like x-o without the same time pressures. x-o don't appear to charge for transfers in, although transfers out are charged.

You will have to check if the RM nominee scheme charges for transfers out. I haven't looked.

I would also be grateful for explanation of the £20 fee for "attendance at shareholders meetings"? Thanks.

Being a nominee account although you are the legal owner XO do everything on your behalf. Your name is unknown to Royal Mail, they only see XO as the owners. Therefore if you want to attend a RM shareholders meeting they have to inform RM you are entitled to attend. I assume they do this by sending you along as a proxy.

Jennifer_Jane

Did anyone who has applied online (I suppose all of us) see anywhere for dividends to be reinvested, please? I just saw a place for a bank account for dividends to be sent to, and perhaps foolishly, I put in those details.

I've elected to go via the Equiniti nominee account as I am used to them with my previous work company shares, and I didn't want to pay any non-trading fees (like we have to with iii, for instance), and I didn't want paper shares floating about.

Did I make a mistake?

Thanks to all who have posted. Interesting thread. I've requested £2,000 which technically I could afford to lose and is just sitting in my bank account as an emergency fund (but I have access to other money if required).

Looking forward to be back in the share game. I love the risk element of this sort of gambling. Don't think this is a long-term share unless the dividend is maintained. Who knows.

Good luck!