Unilever shares: moving headquarters to Rotterdam

thrifty_pete
thrifty_pete Posts: 307 Forumite
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in Savings & investments
I have shares in Unilever, and I realise these are specialist questions for a general forum but I'll see what the MSE oracle can tell me!
In September there is a shareholder vote on whether the headquarters should be moved to Rotterdam in the Netherlands. Do I have any chance of voting in that as I hold the shares in a nominee account? Unilever will then not qualify to be in the FTSE 100 but I'm not sure that bothers me as I intent to hold the shares for the long term.
Are there likely to be any changes to tax? I gather there is a dutch withholding tax, but it is due to be abolished? I have shares in IAG (British Airways) which I didn't realise was headquartered in Madrid (although listed in London) and the dividends have Spanish tax deducted. Frustrating as I'm well under the personal allowance for dividends. Thanks for your help!
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  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    I gather there is a dutch withholding tax, but it is due to be abolished?

    I hold EAT which suffers the Dutch dividend withholding tax, I read about the abolition of the existing withholding tax at the start of 2020 but there are aspects of the new tax system replacing it that aren't yet clear so perhaps it's not yet possible to say how Unilever might be affected.

    I can't imagine the UK will be on the EU tax haven blacklist so hopefully EAT dividends from August 2020 will be boosted.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    OK, thanks, EAT is an investment company, rather than the sandwich chain in the UK?!
    I've found a FAQ slightly buried on the Unilever website
    "For a temporary period following simplification until the Dutch government have implemented the
    removal of Dutch Dividend Withholding Tax on dividend payments, with effect from 1 January 2020, an
    alternative means of receiving distributions will be available which is not subject to Dutch Dividend
    Withholding Tax and which is not expected to change the tax treatment of distributions for UK and US
    tax resident shareholders."
    I'm not clear when the change to the corporate structure will take place? Not until 2020 or in 2019?
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Yes EAT the European Assets Trust managed by F&C, based in the UK, priced and pays out in Euros, listed in London.

    There's stuff all over the internet, this site seems to provide the most complete summary I could find without spending long on it.

    https://www.dlapiper.com/en/germany/insights/publications/2018/03/dutch-government-announces-future-tax-developments-key-takeaways-for-business/
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • System
    System Posts: 178,090 Community Admin
    Photogenic Name Dropper First Post
    thrifty_pete wrote: »
    I have shares in Unilever, and I realise these are specialist questions for a general forum but I'll see what the MSE oracle can tell me!
    In September there is a shareholder vote on whether the headquarters should be moved to Rotterdam in the Netherlands. Do I have any chance of voting in that as I hold the shares in a nominee account? Unilever will then not qualify to be in the FTSE 100 but I'm not sure that bothers me as I intent to hold the shares for the long term.
    Are there likely to be any changes to tax? I gather there is a dutch withholding tax, but it is due to be abolished? I have shares in IAG (British Airways) which I didn't realise was headquartered in Madrid (although listed in London) and the dividends have Spanish tax deducted. Frustrating as I'm well under the personal allowance for dividends. Thanks for your help!
    I would not bet on the move happening:
    https://www.ft.com/content/3fafd93e-8507-11e8-a29d-73e3d454535d
    Whether you can vote depends upon your broker and there may be a fee.
  • dividendhero
    dividendhero Posts: 2,417 Forumite
    It'd be quite possible for Unilever to move its HQ to Holland, but still have a London listing - whether that'd make them eligible for FTSE 100 membership, I'm not sure TBH
  • aroominyork
    aroominyork Posts: 2,821 Forumite
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    Will Lindsell Train UK Equity cut out Unilever, which is nearly 10% of the fund? The fund's objectives give flexibility: "investing primarily in shares quoted on any of the markets of the London Stock Exchange, including the Alternative Investment Market (AIM). Whilst the primary focus will be in the UK, the Fund may also invest in other global markets." I expect Nick will hold tight in the short term.
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    dividendhero wrote: »
    It'd be quite possible for Unilever to move its HQ to Holland, but still have a London listing - whether that'd make them eligible for FTSE 100 membership, I'm not sure TBH
    It is quite a big change - as far as I understand it, not only is the headquarters moving, but the PLC shares will no longer exist, in their place sharegolders will be given "Depositary Interests" in the Dutch NV company. So there won't technically be any actual shares listed in London. Fairly academic as of course you still get dividends and I assume a shareholder vote but a big change nonetheless.
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    Yesterday more documents were released to shareholders (although anyone can read them online).
    I called Halifax and they didn't know anything about it. They can leave a note on your account noting your voting preference, but I'm amazed they can use such a manual process.
    When Vodafone restructured in 2014 there was an online voting form which made it very clear and transparent. I wonder why they haven't done that this time around.
    It is worth noting you have to opt in with Halifax for "company reports. share benefits, shareholder meetings and voting rights" which is off by default!
    I think it is probably generally better for the company to be in Holland, as there is better protection from hostile takeover. I don't want it taken over by Warren Buffet and asset stripped like Heinz & Kraft were.
    On the other hand, my shares will did in value a bit as it exits the FTSE100.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    Sell, sell, sell. Buy Procter and Gamble inside a SIPP (HL?, A J Bell? ...) so that you avoid withholding tax.

    This is not advice.
    Free the dunston one next time too.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Or if you don't have a SIPP, buy Berkshire Hathaway outside a tax shelter or inside an ISA.

    This isn't advice either.
    Free the dunston one next time too.
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