National grid shares help

EthicsGradient

I'm not sure I can add to what I already said about whether it's worth it for you.

At this moment's price (193.35p), selling 31 of them for £59.93 would get you enough to buy the remaining 9.

(It's notable the nil-paid price has gone from 150p at the end of yesterday to 193p now. People are finding it hard to price these "fairly")

Kerno68

Hi I have 49 shares and decided to buy my allotted 14, however I can't get past the card holder validation online, not sure if it's because my interest connection is slow, anyone having the same problem ?

MACKEM99

Nice cheque in today's post

wmb194

MACKEM99 said:

Nice cheque in today's post

Relating to what? Selling your rights?

MACKEM99

wmb194 said:

MACKEM99 said:

Nice cheque in today's post

Relating to what? Selling your rights?

Yes selling rights £2.05 each 😃

C212

C212 said:

EthicsGradient said:

C212 said:

The option I have selected is to sell the NGNP right and use the money to take up some of the rights issue (at £6.45 per share), i.e. the "tail swallowing" option.

At the end of the exercise I will have an additional ~900 National Grid shares. 

When filling out my annual tax return:

A)   Do I put the £5,805 (900 x £6.45) as dividends

   Do I treat the £5,805 as a gain (and pay CGT on the amount over the £3,000 limit).

C)   Do nothing until I sell the shares (and then pay CGT as due at the time).

Reading the HMRC guides, I think it might be option B but it isn't completely clear, so any advise would be gratefully received

C ) There may be a CGT calculation this year, on the money obtained by selling some of the nil-paid shares - but that is not "£5,805". In section 10 on page 54 of it talks about CGT on the proceeds from selling (part of) your nil-paid shares. But it says that if the proceeds are deemed "small" - under 5% of the value of the existing shares, or under £3,000 - then you don't have to calculate CGT on it. But I'm not certain when that "value" is taken (or if it is with the dividend or ex-dividend). My calculation (which could be wrong, and I'd really like someone more experienced to check this, maybe multiple times, before anyone thinks this might be right) is that "tail swallowing" at the moment involves:
current price of existing shares with dividend = 846p
current price of nil-paid shares = 161p
If you had 2400 existing shares (worth £20,304), you got 700 nil-paid shares
If you sell 561 at £1.61 you get £903.21
That pays for making the 139 remaining shares "fully paid" at £6.45 = £895.55
903.21 / 20304 = 0.0445 = 4.45%, so below the "small" level, so you don't have to pay (or calculate) a capital gain this year (even if the "value of the existing shares" should be the ex-dividend value, that would be 903.21 / ((8.46-0.3912)*2400) = 4.66%, so still under 5%)

Thanks for the explanation.  You can work it though to get an equation for the fractional gain.

If "m" is the price (in £) you get paid for the nil-paid shares and "n" is the current price of existing shares (in £) with dividend, then the fractional gain is given by

            7/24 x (6.45 /(m+6.45)) x m /n

For your example with m=1.61 and n=8.46 you get 0.044, so 4% so than the HMRC "5%" criteria.

I have now got my rights issue letter form Equiniti and taking trading costs into account I get the gain as between 5.01% and 4.90% depending if I take the base National Grid share price on the trading day or settlement day. So on this basis I am not intending to put this as eligible for CGT on my net self assessment tax return.

bobibhai

My wife has shares- we knew nothing about the issue- until too late. Equiniti says it sent the usual Notice to all shareholders by email and post. My wife does not use email and we have not had anything in the, usually reliable, post. Told Equniti- then told it went to her Investments Platform and/or IFA. Platform admit receiving e mail on 24th June- did nothing until 10thJune when it is claimed they emailed her IFA-Note:-TOO LATE TO BUY THE ALLOCATION ! IFA says he has never received anything- didn't even know about NG Rights issue. So she will get her allocation at £1.90 per share default rate. No way back. Several other posters on Internet complained of not getting Notices or very late. Equiniti confirm they have had such complaints. Equiniti would not know her who IFA is anyway. So who is too blame?

wmb194

bobibhai said:

My wife has shares- we knew nothing about the issue- until too late. Equiniti says it sent the usual Notice to all shareholders by email and post. My wife does not use email and we have not had anything in the, usually reliable, post. Told Equniti- then told it went to her Investments Platform and/or IFA. Platform admit receiving e mail on 24th June- did nothing until 10thJune when it is claimed they emailed her IFA-Note:-TOO LATE TO BUY THE ALLOCATION ! IFA says he has never received anything- didn't even know about NG Rights issue. So she will get her allocation at £1.90 per share default rate. No way back. Several other posters on Internet complained of not getting Notices or very late. Equiniti confirm they have had such complaints. Equiniti would not know her who IFA is anyway. So who is too blame?

When you own shares in a company it's up to the individual to keep on top of the news that relating to it.

DUBVENDOR

wmb194 said:

bobibhai said:

My wife has shares- we knew nothing about the issue- until too late. Equiniti says it sent the usual Notice to all shareholders by email and post. My wife does not use email and we have not had anything in the, usually reliable, post. Told Equniti- then told it went to her Investments Platform and/or IFA. Platform admit receiving e mail on 24th June- did nothing until 10thJune when it is claimed they emailed her IFA-Note:-TOO LATE TO BUY THE ALLOCATION ! IFA says he has never received anything- didn't even know about NG Rights issue. So she will get her allocation at £1.90 per share default rate. No way back. Several other posters on Internet complained of not getting Notices or very late. Equiniti confirm they have had such complaints. Equiniti would not know her who IFA is anyway. So who is too blame?

When you own shares in a company it's up to the individual to keep on top of the news that relating to it.

Correct you should keep an eye on The RNS for Company you hold shares in there will be options to have these emailed out to you when they are released 

What is the RNS for listed companies?

The RNS publishes company results, share issues and any changes in a company's board of directors. These are all things which could affect a company's share price and performance on the stock market.

wmb194

DUBVENDOR said:

wmb194 said:

bobibhai said:

My wife has shares- we knew nothing about the issue- until too late. Equiniti says it sent the usual Notice to all shareholders by email and post. My wife does not use email and we have not had anything in the, usually reliable, post. Told Equniti- then told it went to her Investments Platform and/or IFA. Platform admit receiving e mail on 24th June- did nothing until 10thJune when it is claimed they emailed her IFA-Note:-TOO LATE TO BUY THE ALLOCATION ! IFA says he has never received anything- didn't even know about NG Rights issue. So she will get her allocation at £1.90 per share default rate. No way back. Several other posters on Internet complained of not getting Notices or very late. Equiniti confirm they have had such complaints. Equiniti would not know her who IFA is anyway. So who is too blame?

When you own shares in a company it's up to the individual to keep on top of the news that relating to it.

Correct you should keep an eye on The RNS for Company you hold shares in there will be options to have these emailed out to you when they are released 

What is the RNS for listed companies?

The RNS publishes company results, share issues and any changes in a company's board of directors. These are all things which could affect a company's share price and performance on the stock market.

In this case you didn't even need to look for an RNS, it was all over the business news.