Selling paper Lloyds Bank shares

simonsmithsays

Thanks in advance for reading this folks.

So I was bequeathed a few Lloyds Bank shares a few years ago.

As part of the DRIP I currently hold around 1000 of these as paper certificate shares over about 12 years.

The first two thirds of these relate to my old address - more recent ones my current ones.

These are all showing on my online Equinti account.

I'm looking towards selling these shares in the short / middle term.

So a few questions:

Best platform (price) in terms of price - presume they'll need the physical share certs.

Will the two different addresses cause issues?

Anything to watch out for regarding DRIP and timing?

TIA

boingy

XO will take paper certs and charge six quid for selling them. Whatever you do don't sell them via Equinti !

Low-Cost 💸 Execution Only Share dealing, ISAs & Junior ISAs

spreadsheeterapple

simonsmithsays said:

So a few questions:

Best platform (price) in terms of price - presume they'll need the physical share certs.

Will the two different addresses cause issues?

Anything to watch out for regarding DRIP and timing?

TIA

"presume they'll need the physical share certs."

- yep, hardly any broker/platform deals in paper shares any more without having you put them in their 'nominee account', converting them to electronic form & dematerialising the paper certs. This takes a bit of time for their own admin in setting up your trading account & their nominee account, also they need to submit your paper certs to Registrar to change ownership. You retain 'beneficial ownership' via their nominee account. Choose a firm on the basis of how much you trust them with this, and how long they will take before the shares are in the trading account and saleable; at least 2 weeks turnaround I would have thought, 2 weeks I would rate as fast.

"Will the two different addresses cause issues?"

- possibly, because it will look like a different owner. Speak to Equinti ? They may have to issue new paper certs, adding to the timescale before you can sell.

"Anything to watch out for regarding DRIP and timing?"

- your DRIP shares are still acquisitions, and hence subject to capital gains calculations for the date they are sold. You'd also need to have a running total of acquisition prices & numbers of shares covering all the original inherited shares plus all the DRIPs, because capital gains are calculated on a running average of acquisition prices for the total pool of shares - as they are all the same company without any gap of never holding any. 

- you may wish to get your sale in before tax year end, or after the new one starts, depending on your total capital gains this year, and what you think next years' tax free allowance might be. Tax Free capital gains are now only £3000 p.a. The government could potentially make another change, reducing that, or even abolishing altogether; we won't know until it happens.

simonsmithsays

Thanks for the replies so far.

Just to be clear - am I correct that I'll have to complete a Crest Transfer Form rather than an Account Transfer Form for my scenario.

wmb194

simonsmithsays said:

Thanks for the replies so far.

Just to clear - am I correct that I'll have to complete a Crest Transfer Form rather than an Account Transfer Form for my scenario.

Another option is iWeb, part of LBG, £5 per trade and no ongoing account fee.

Yes, if they haven't been dematerialised - the fact that you have them indicates they haven't been - then you need to complete the Crest transfer form and supply the certificates.

If you've already updated the registrar with your new address the fact that some of the old certificates state a previous address shouldn't be a problem. 

Beddie

I think it's worth checking with Equiniti, as they might sell them for about £20, they tend to be okay for smaller holdings. If, however, they charge per certificate - no!

simonsmithsays

Beddie said:

I think it's worth checking with Equiniti, as they might sell them for about £20, they tend to be okay for smaller holdings. If, however, they charge per certificate - no!

Fees

The fee is 1.9% of the transaction value with a minimum of £70 and will be deducted from the sale proceeds/investment amount.