Standard Life shares

Scarpacci

vectistim wrote: »

I wondered why the share price seemed to have jumped.

Standard Life are selling their Canadian operations and returning cash to shareholders. The jump suggests the valuation they got for their Canadian operations was bigger than what the market was pricing in as their value to the company. This may have also caused the market to revalue other parts of the company, which could also possibly now be sold off.

digannio

Last year my Standard Life shares paid out around £450 and I reckon i'm in line for around £1,200 with this share-out. I'd already decided to hold and I'll be keeping them long term. The enhanced dividend last year, along with this share-out and the fact that I can see the company adapting well to the pensions shake-up suggest to me it could be a reasonable earner going forward.
Mind I can remember at one time feeling good about my Bradford and Bingley shares;)

gt94sss2

wearside wrote: »

The news today is great for Stand Life Share holders. Not only has the share price increased by about 10% to £4.17 but the company have said that it returning capital of 73p per share to shareholders following receiving £2.2 Billion from selling it's Canadian business to Manulife. What exactly this means will become clear but it is good news for a change.:j:j

Just remember the share price will also go down by 73p when they pay out the cash.

Regards
Sunil

bizzybee

This article sheds a little more light on what's going to happen


http://www.telegraph.co.uk/finance/personalfinance/investing/11077346/Standard-Life-the-best-way-to-take-your-windfall-all-your-questions-answered.html

stulaunch

Taken from busybee's link

"Tax. Most individual shareholders won't have to pay tax if they receive the benefit in the form of capital, because the sums would be too small to exceed the annual capital gains tax exemption, currently £11,000. But tax would probably be payable in most cases if investors went for option C, where payments would be treated as dividend income.
For most investors who don't hold their shares inside an Isa the option B is likely to be better from a tax standpoint. But everyone's circumstances will be different."

So, as I understand it. I held on to my shares, the only shares I have, so if I take option B I would not have to declare it as income on my tax return? So not having to pay tax?

I also read in the article about people having these shares in a S&S Isa.
I don't understand S&S Isa's, but would it be better for me to do this? I haven't put any thing in my cash Isa for years.

Thanks

Thrugelmir

gt94sss2 wrote: »

Just remember the share price will also go down by 73p when they pay out the cash.

Regards
Sunil

Also with a smaller business the dividend may well be lower in the future.