BT share price woes

Doshwaster

theEnd wrote: »

Complete aside, but I could never buy shares in a company with such a bad website! Their whole ordering and customer services screams of a very badly managed company.

For a supposed communications company, I have always found BT one of the worst businesses to contact. It's impossible to find the right number to call to speak to someone about a particular issues and you always spend ages being bounced around from department to department being told that you've reached the wrong people.

Pincher

Panic seems to have bottomed out at 298p, around 08:27.

Bought some at 305p .

Previously bought at 405p and 375p.

Amusingly, because the capital gains is calculated using average acquisition cost, 350p, I could sell some next week, at 350p, and get the money back into the 2018 crash reserve, without paying any capital gains! 45p per share of gain, but TAX FREE!?

This manoeuvre has a funny effect on the remainder shares, not sold. If I don't sell these shares, and incur the capital gains based on 350p, it's like I bought them at 350p, instead of 405p and 375p.
This means the 14p dividend is now 4% on 350p, instead of:

3.5% on 405p
3.7% on 375p

I was going to keep some BT.A for the 2018 apocalypse, anyway, on the principle that people will need broadband, like people need groceries.

Glen_Clark

Pincher wrote: »

Panic seems to have bottomed out at 298p, around 08:27.

Bought some at 305p .

Previously bought at 405p and 375p.

Amusingly, because the capital gains is calculated using average acquisition cost, 350p, I could sell some next week, at 350p, and get the money back into the 2018 crash reserve, without paying any capital gains! 45p per share of gain, but TAX FREE!?

This manoeuvre has a funny effect on the remainder shares, not sold. If I don't sell these shares, and incur the capital gains based on 350p, it's like I bought them at 350p, instead of 405p and 375p.
This means the 14p dividend is now 4% on 350p, instead of:

3.5% on 405p
3.7% on 375p

I was going to keep some BT.A for the 2018 apocalypse, anyway, on the principle that people will need broadband, like people need groceries.

As I understand it if you sell some next week, the taxman will count them as the ones you have bought this week?

Ray_Singh-Blue

I'm in at £3.04

My first buy since Lloyds in June 2016

Plan: hold for 10 years+, collect dividends, see how the world looks in 2027

economic

Pincher wrote: »

Panic seems to have bottomed out at 298p, around 08:27.

Bought some at 305p .

Previously bought at 405p and 375p.

Amusingly, because the capital gains is calculated using average acquisition cost, 350p, I could sell some next week, at 350p, and get the money back into the 2018 crash reserve, without paying any capital gains! 45p per share of gain, but TAX FREE!?

This manoeuvre has a funny effect on the remainder shares, not sold. If I don't sell these shares, and incur the capital gains based on 350p, it's like I bought them at 350p, instead of 405p and 375p.
This means the 14p dividend is now 4% on 350p, instead of:

3.5% on 405p
3.7% on 375p

I was going to keep some BT.A for the 2018 apocalypse, anyway, on the principle that people will need broadband, like people need groceries.

2018 apocalypse? what will happen in 2018?

george4064

BT has dragged down other telecom stocks with it, including TalkTalk and CityFibre Infrastructure Holdings...

Must just be negative sentiments towards the sector as a whole because of the BT 'scandal'.

Pincher

economic wrote: »

2018 apocalypse? what will happen in 2018?

My RELIGION says there are crashes in years ending in "8".

Don't ask a priest why he believes in Jesus.

Well, try this one:

If Teresa May pulls the trigger in March 2017, there is plenty of opportunity for a mass exodus that will peak in 2018. What kind of company will wait till 2019, when we actually exit?

Pincher

Glen_Clark wrote: »

As I understand it if you sell some next week, the taxman will count them as the ones you have bought this week?

Thanks for raising this, maybe I didn't really understand the 30 day rule after all.


https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/hs284-shares-and-capital-gains-tax-2016

There are a couple of circumstances in which shares will not be regarded as becoming part of the holding. Mainly shares affected by the ‘bed and breakfasting’ and ‘same day’ rules (see below).




It's only further down that they specify the 30 day rule:



You are treated as disposing of shares in the following order:

First
Shares acquired on the same day as the disposal (the ‘same day’ rule).

Second
Shares acquired in the 30 days following the day of disposal (the ‘bed and breakfasting’ rule) provided the person making the disposal was resident in the United Kingdom at the time of the acquisition if the relevant acquisition was on or after 22 March 2007.

Third
Shares in the Section 104 holding.
If the above rules fail to exhaust the shares disposed of, the remaining shares are matched with later acquisitions, taking the earliest one first.



The bed and breakfast rule is about buying back within 30 days.

So, if I am just selling within a week, with no buying back, it should not trigger the bed and breakfast rule. The buys at 405p and 375p happened months ago. Other deals inside an ISA don't count.

2010

I can remember years ago when BT share price reached the dizzy heights of £16 plus (yes pounds).
An old codger I knew used to traipse to the library most days to check the price in the FT.
He had watched the price steadily rise over the years to £16 plus but daren`t sell any in case they kept rising even more.

Needless to say he never sold any and then gradually watched them go all the way down again.

Pincher

Ray_Singh-Blue wrote: »

I'm in at £3.04

My first buy since Lloyds in June 2016

Plan: hold for 10 years+, collect dividends, see how the world looks in 2027

Brave man. :beer: