ASDA (Walmart) Sharesave Scheme – Retention and Trading of Shares

clemenza

I wonder if any forum members are able to advise in matters linked to ASDA’s Sharesave Scheme. I have been contributing to the ASDA Sharesave Scheme for the past three years and my plan is due to mature in July. I am aware that many ASDA Colleagues tend to sell their shares as soon as they are able after maturity. Indeed, I have yet to find any Colleagues who have actually retained their shares.


I have attempted to find out the pros and cons of retaining ASDA (Walmart) by speaking to Computershare, the company who manage the Sharesave Scheme for ASDA. Unfortunately, one branch of Computershare based in the UK deal with the Scheme prior to Wall-mart Shares being purchased whilst another branch based in the US deal with the actual purchase and selling of the shares, once the Sharesave plan has reached maturity. This has made communication quite difficult.

Despite speaking to someone in the US, I remain unclear as to, the process, logistics and specifically the advantages/disadvantages of retaining Walmart shares. Moreover, I am unaware as to any financial implications of trading shares on the US Stock Exchange, particularly as these relate to the UK Inland Revenue.

I would be obliged for any information and advice in any of the above matters.

Ben12345

I have a not unrelated question to this too (my wife has shares through Asda):
If she opts to sell the shares, is there a tax liability on them? (e.g. if she holds a £1,000 holding, will she get £1,000 or £1,000 less tax).
If the answer to the above is that there is tax to pay, is there a way around it by holding the shares in an ISA?

The shares are Walmart shares, listed in the US.
Thank you in advance.

Vortigern

clemenza wrote: »

I have attempted to find out the pros and cons of retaining ASDA (Walmart) by speaking to Computershare, the company who manage the Sharesave Scheme for ASDA.

Pros would be potential gain in value and possibility of regular, rising dividends. Cons would be potential fall in value and stopping of dividends. Computershare are not allowed to advise you on the merits of retaining or selling your shares. Nobody can.

Some say it's unwise to hold all your investments in the shares of a single company and that it's better to diversify. It could also be unwise to depend on one single company for your salary, your pension and your investments. Is ASDA too big to fail?

Despite speaking to someone in the US, I remain unclear as to, the process, logistics and specifically the advantages/disadvantages of retaining Walmart shares.

The process and logistics should be explained to you by ASDA's HR/personnel/paygroup. I suggest you contact a colleague in that department. They can not advise on the advantages/disadvantages.

Moreover, I am unaware as to any financial implications of trading shares on the US Stock Exchange, particularly as these relate to the UK Inland Revenue.

Sorry, I can't help with that.

Ben12345 wrote: »

My wife has shares through Asda.
If she opts to sell the shares, is there a tax liability on them? (e.g. if she holds a £1,000 holding, will she get £1,000 or £1,000 less tax).
If the answer to the above is that there is tax to pay, is there a way around it by holding the shares in an ISA?

The shares are Walmart shares, listed in the US.

When your wife sells her shares, she should subtract the price she paid for them, from the proceeds of the sale. This gives the gain(or profit). Every individual has a Capital Gains Tax allowance of £10,900 in the current tax year so, unless she has made other gains elsewhere, she will pay no CGT on £1000 worth of shares.

Shares from HMRC approved sharesave schemes can be moved into an ISA within 90 days of taking up the option to buy. This certainly applies in the case of UK listed shares. I don't know whether it also applies to US listed shares. Asda HR should be able to tell you how to ISA your shares, if it's possible to do so.