What to do with Walmart shares?

IKE25

Hi guys,

In 2001 I took out a share save scheme with Walmart (through ASDA) which matured in 2004. Because I deferred a couple of payments, I was unable to utilise a Lloyds TSB ISA and had to buy the shares through Computershare in America. I think at the time I bought around 1500 pounds (sorry pound sign doesn't work on this keyboard).

Having received a recent statement from them, I decided to see what the shares are worth today and its $3,482.12.

Looking at the exchange rate (1.9840) this equates to 1755 pounds.

I'm thinking this would pay off my interest free 1600 pound overdraft, but I'm not sure how to go about it and therefore have a few questions:

1) Is it true that there's a British/US treaty that allows me to sell American stocks without having to pay an American tax? As I haven't utilised any UK capital gains can I sell these shares without having to pay UK tax?

2) Would I have to pay a fee for selling them and converting them into British Pounds?

3) Could I sell them, put them in a US dollar account and wait (probably 10 years) for a more favourable exchange rate before converting them to pounds?

4) I'm not that desperate for the money, and it's just typical that when the shares make a 30% gain, the exchange rate has to be so ridiculously unfavourable. Should I just forget about them?

Thanks

purch

1) No you shouldn't have to pay any U.S. Tax (subject to residence)
2) Yes.....they won't do it for free
3) Yes.....but why do you expect a more 'favourable' exchange rate ever
The GBP/USD exchange rate is what it is and reflects the current economic realities
4) No.......in fact in light of the way the stock is currently performing I'd hold on to them


P.S. I hold WalMart stock myself.

jamesd

You'll complete a W-8BEN form that will exempt you from the broker automatically deducting US taxes.

Interest rate changes may affect the exchange rate but the other question to ask is whether you think that you can get a better return from selling this and buying something else. Just putting the money into a US Dollar account probably isn't sensible unless you expect a rapid favorable exchange rate movement.