SIPP and Rolls Royce Shares

Boringfrog

I have a SIPP and have put my maximum in this year, £2880, I have some RR shares and I'm going to buy more when the forthcoming rights issue goes ahead, will there be any problems with the tax man if I do this?

AnotherJoe

Not if you are using money thats already in the SIPP. Will you be?

Boringfrog

AnotherJoe said:

Not if you are using money thats already in the SIPP. Will you be?

No I wasn't going to, no cash in the account so would have to sell some other shares.

Thrugelmir

You could sell the nil paid rights in the open market and use that cash to buy some more RR shares. 

AnotherJoe

Boringfrog said:

AnotherJoe said:

Not if you are using money thats already in the SIPP. Will you be?

No I wasn't going to, no cash in the account so would have to sell some other shares.

Goodness that beats even me for pedantry.
My point/question was, will the money needed to purchase the rights come from within the SIPP (whether that's existing cash or needing to sell some investments in the SIPP) or would it be money you needed to add to the SIPP. 

NottinghamKnight

It's a risky time to be bullish on RR shares.

Boringfrog

AnotherJoe said:

Boringfrog said:

AnotherJoe said:

Not if you are using money thats already in the SIPP. Will you be?

No I wasn't going to, no cash in the account so would have to sell some other shares.

Goodness that beats even me for pedantry.
My point/question was, will the money needed to purchase the rights come from within the SIPP (whether that's existing cash or needing to sell some investments in the SIPP) or would it be money you needed to add to the SIPP. 

Sorry about that, money would have to be added. 🤔

fred246

NottinghamKnight said:

It's a risky time to be bullish on RR shares.

Be greedy when others are fearful.

NottinghamKnight

fred246 said:

NottinghamKnight said:

It's a risky time to be bullish on RR shares.

Be greedy when others are fearful.

Far more reasons to be fearful than greedy given the state of the world travel economy. RR make most of their money from services and ongoing maintenance rather than engine sales, you would think that would provide some support to earnings  but if your clients have no money coming in many will not be paying you and the rest will be renegotiating their contracts. 

AnotherJoe

Boringfrog said:

AnotherJoe said:

Boringfrog said:

AnotherJoe said:

Not if you are using money thats already in the SIPP. Will you be?

No I wasn't going to, no cash in the account so would have to sell some other shares.

Goodness that beats even me for pedantry.
My point/question was, will the money needed to purchase the rights come from within the SIPP (whether that's existing cash or needing to sell some investments in the SIPP) or would it be money you needed to add to the SIPP. 

Sorry about that, money would have to be added. 🤔

Then you can't do it in the SIPP (Or at least not without a tremendous amount of faff and hassle).

And presumably to do it outside you'd need to start by buying the RR shares now outside the SIPP (assuming to get teh rights issue you need to be a shareholder o a particular date which hasnt yet passed?