Standard Life - 73p Cash Payment But .......

Muscat63

Thank you. That confirms what I had understood. Can you tell me what sort of dividend will be payable, and when? Initially it looked as though it might be £400+, then from what I read elsewhere it looked like £0!

molerat

You will get 73p per current share, so around £495, in early April and a dividend payment of 11.43p per new share, so around £63, on 19 May.

Muscat63

Lovely. Thank you so much 😊

killerkev

Muscat63 wrote: »

Lovely. Thank you so much 😊

Make sure that SL have a up to-date address as all payments will be sent to the last registered address

torbrex

In case anyone is interested in the result of the vote:


The resolution - To approve the return of 73 pence per share, the implementation of the B/C share scheme, and the share consolidation (all as described in the circular and notice of general meeting).

For - 1,070,652,459

Against - 6,352,144

Withheld - 2,108,473

Chadsman

I understand that for basic rate tax payers there is a notional tax credit meaning there is no further tax to pay- if a basic rate tax payer who has not used any of their annual CGT exemption allowance elects to have the payment made as a capital gain is the notional tax credit paid to the shareholder?
:beer:

molerat

No, the tax credit is notional for tax purposes and as such does not actually exist. If the shareholder decides to take a capital payment in place of a dividend they will not receive anything extra.

bowlhead99

Chadsman wrote: »

I understand that for basic rate tax payers there is a notional tax credit meaning there is no further tax to pay- if a basic rate tax payer who has not used any of their annual CGT exemption allowance elects to have the payment made as a capital gain is the notional tax credit paid to the shareholder?
:beer:

I agree with molerat that the tax credit is notional and doesn't exist as something that can be taken in cash, it can only be used to cover liability on dividend tax.

However, there is a second fundamental flaw in your suggestion. This notional income tax credit thing is attached to the dividend, right? So if you deliberately chose not to even receive the "C" shares which come with a dividend, and instead chose to take "B" shares which have absolutely no right to get a dividend and are simply redeemed / cashed in, to get capital proceeds - then there's no way you could also be in line for any kind of special dividend or tax credit.

You are explicitly giving up the dividend and the associated tax credit. So, even if the tax credit were payable in cash, you couldn't access it if you went for the other type of shares that just have you getting a return of capital.

pinklady21

Can anyone explain to me why the share price seems to be so high just now? Is this simply related to the 73pps windfall or do the markets know something else?
Intrigued!

bowlhead99

The market price when they were doing example calcs for the consolidation etc was around 401p. Clearly the market likes the results announced last month and the positive votes etc. Plus some people will be using their cash they are extracting to invest right back in to the same company which creates demand for shares, even though passive investors such as trackers will not want to spend their cash on buying in now it's a smaller company.

The price was moving up last week even though FTSE overall was down. As for a specific reason, share prices bobble around all the time so you can't really say why it's 10-15% higher or if it will stay here. It would seem pretty likely that whatever the markets 'know', it won't be this price in exactly one week or one month or one year from now.