VOD-Vodafone,sell or wait..?

Thrugelmir

Currently considering the options whether to take B or C shares. As my VOD holding is within my SIPP.

Been sent a W-8BEN for completion. Unsure currently how to complete to avoid paying US tax.

May sell out of Verizon once the transaction completes.

planteria

i might sell Verizon and buy more Vodafone with the proceeds

miller

Thrugelmir wrote: »

Currently considering the options whether to take B or C shares. As my VOD holding is within my SIPP.

Been sent a W-8BEN for completion. Unsure currently how to complete to avoid paying US tax.

May sell out of Verizon once the transaction completes.

Got the blurb from X-O. I assume the Verizon CDI's can be held within their ISA wrapper as they did not say otherwise. Once the W-8BEN is filled in the witholding tax goes from 30% to 15%. This tax applies to dividends and sale proceeds of Verizon CDI's.

In a SIPP you will pay 0% witholding once the W-8BEN is filled as there is a special arrangement. AFAIK as you are within a SIPP (and for those within an ISA) B/C shares make no difference.

FYI I filled in my W-8BEN as follows:
1. Full Name
4. Address Country = "United Kingdom"
7. NI number (optional)
8. Sharedealing a/c number
9. Tick box a only, again country = "United Kingdom"
Everything not mentioned blank, sign the bottom, watch the american date format then capacity is "As The Individual".

Again AFAIK, having dated it 01-01-2014 it should be valid until the end of 2017.

What a b-llache.

flashnazia

I've got mine in an ISA. Am I right in thinking I should elect for the B (capital option) shares instead of income or does it make no difference?

I read on some other boards that brokers are saying c shares cannot be held with an ISA. Confused much.

westy22

My brokers (AJ Bell) have advised me that C Income shares cannot be held in an ISA but can be held in a SIPP. The only option for ISA is B shares according to them.

flashnazia

westy22 wrote: »

My brokers (AJ Bell) have advised me that C Income shares cannot be held in an ISA but can be held in a SIPP. The only option for ISA is B shares according to them.

My broker xo has not said anything but they are a bit 'no frills' anyway.
Therefore I have to elect for the capital B share option myself; default is C.
As far as I can see it, ISA holders are worse off with the C option as the dividend will be taxed at 10%?

Thrugelmir

miller wrote: »

Got the blurb from X-O. I assume the Verizon CDI's can be held within their ISA wrapper as they did not say otherwise. Once the W-8BEN is filled in the witholding tax goes from 30% to 15%. This tax applies to dividends and sale proceeds of Verizon CDI's.

In a SIPP you will pay 0% witholding once the W-8BEN is filled as there is a special arrangement. AFAIK as you are within a SIPP (and for those within an ISA) B/C shares make no difference.

FYI I filled in my W-8BEN as follows:
1. Full Name
4. Address Country = "United Kingdom"
7. NI number (optional)
8. Sharedealing a/c number
9. Tick box a only, again country = "United Kingdom"
Everything not mentioned blank, sign the bottom, watch the american date format then capacity is "As The Individual".

Again AFAIK, having dated it 01-01-2014 it should be valid until the end of 2017.

What a b-llache.

Thanks for the informative post.

Current feeling is that I'll sell the Verizon CDI's and reinvest the proceeds. Part of which which will go back into VOD. As the future dividend yield looks promising. Should this fail there's always the takeover speculation.

miller

flashnazia wrote: »

My broker xo has not said anything but they are a bit 'no frills' anyway.
Therefore I have to elect for the capital B share option myself; default is C.
As far as I can see it, ISA holders are worse off with the C option as the dividend will be taxed at 10%?

Makes sense. Hadn't thought of that.

With regards to "holding" B/C and being permitted in an ISA they are effectively cancelled straight away and are only really an instrument to distribute the funds (also the default with X-O is C, which they would not allow).

planteria

i havent heard from HL re. this yet. my Vodafone shares are within my ISA with them.

Wilkins

I intend to sell the Verizon CDIs and hold the remaining Vodafone. I'm not sure that the latter know what to do with the money and the Verizon stake was probably supporting the dividend. On the other hand, I may be wrong, and the management might pull off a good deal further down the line. So I wont sell out completely.