Unilever shares: moving headquarters to Rotterdam

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  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    kidmugsy wrote: »
    Sell, sell, sell. Buy Procter and Gamble inside a SIPP (HL?, A J Bell? ...) so that you avoid withholding tax.
    This is not advice.
    There will be no withholding tax. Under FAQs Dvididends here https://www.unilever.com/investor-relations/simplification/simplification-of-unilever.html
    How will New Unilever NV make payments that are free of Dutch dividend withholding tax?
    New Unilever NV will take steps prior to and following the completion of Simplification which will enable New Unilever NV to make payments to shareholders that will not be subject to DWT (“dividend substitution payments”) until the anticipated abolition of DWT on 1 January 2020.
    Seldom is a decision taken by a company which disavantages its shareholders for tax. The Vodafone restructuing was similarly advantageous. The sums involved were substantial too.
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    kidmugsy wrote: »
    Or if you don't have a SIPP, buy Berkshire Hathaway outside a tax shelter or inside an ISA.
    I'm not sure how HMRC tax policy is relevant to Dutch withholding tax. The tax is "withheld" at source. Presumably if you then pay tax again in the UK on those dividends you can claim a partial credit depending on the double taxation treaty. For many UK investors, they won't be paying any tax on their dividends (e.g. in an ISA) so as I understand it, no way of claming a refund.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    thrifty_pete wrote: »
    I'm not sure how HMRC tax policy is relevant to Dutch withholding tax. The tax is "withheld" at source. Presumably if you then pay tax again in the UK on those dividends you can claim a partial credit depending on the double taxation treaty. For many UK investors, they won't be paying any tax on their dividends (e.g. in an ISA) so as I understand it, no way of claming a refund.

    The point with BKH is that they don't pay dividends at all so there is no WHT to worry about.

    If you hold an ordinary dividend-paying American share like P&G you may want to hold it inside a vehicle that the US recognises as a pension e.g. a SIPP. That avoid US tax of 15% on the dividend.
    Free the dunston one next time too.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    If they exit the FTSE100 what %age are they likely to drop?
    I have some I will be selling but not planning to do so until April because of CGT which at current price would be about 6% of sale price.
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    thrifty_pete wrote: »
    Yesterday more documents were released to shareholders (although anyone can read them online).
    I called Halifax and they didn't know anything about it.

    To be fair to Halifax, I hold some ULVR shares directly and have received no recent communication from them (apart from a nice dividend payment on 5th September) so Halifax may equally not have been informed yet.
  • short_butt_sweet
    short_butt_sweet Posts: 333 Forumite
    Tom99 wrote: »
    If they exit the FTSE100 what %age are they likely to drop?


    will they drop at all? unilever's weighting in indexes that include dutch shares (e.g. eurozone, or europe ex-UK) will presumably increase, which might roughly cancel out the effect of exiting the FTSE 100.


    the share price might be a bit volatile, while investors with a UK-only remit are selling, and investors with an ex-UK-only remit are buying.
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    Apodemus wrote: »
    To be fair to Halifax, I hold some ULVR shares directly and have received no recent communication from them (apart from a nice dividend payment on 5th September) so Halifax may equally not have been informed yet.
    I would have thought their registrar would have sent them an email on 11 September and they would have informed the call centre. I've known about it since July through the media.
    Interesting to think what the typical Halifax Sharedealing customer is. Savvy enough to want to buy their own shares and funds without an IFA. Although when you call customer services you get the feeling they think you're some kind of boffin if you know what a dividend is!
    I can't fault the website, they seem to know what they are doing there.
  • thrifty_pete
    thrifty_pete Posts: 307 Forumite
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    I've just had an email telling me there is a Corporate Action pending (that is Halifax's terminology) and that "Should you retain your holding of Unilever Plc, we will notify you upon receipt of further information from the company."
    Which leaves me none the wiser. I would have thought as the prospectus has been published, all the information they need to register investors' views is known?
  • tocsin
    tocsin Posts: 186 Forumite
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    I nudged HL with a message a couple of days ago. I was assured they would be writing to ULVR shareholders with information on how to 'vote'.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    edited 14 September 2018 at 2:57PM
    This is the Halifax notification today, I don't think there will be any opportunity to vote:

    UNILEVER PLC - Important Information

    Scheme of Arrangement

    1 New ordinary share of New Unilever N.V. for each Existing Unilever Plc share held.
    Important Information & Other Key Dates:
    On 11th September 2018, the Boards of both Unilever Plc and Unilever N.V. announced a decision to simplify and modernise the structure of the businesses by combining Unilever Plc and Unilever N.V. into one legal entity. As part of the decision to modernise their structure, the Boards have further concluded that New Unilever N.V. should be incorporated in the Netherlands to reflect the fact that the Groups Dutch company is larger than the UK company.

    The Boards believe that the combination, which is to be effected by way of a Scheme of Arrangement, will create value, drive performance for the long term and position Unilever for future success.

    The Scheme is subject to shareholder approval at Extraordinary General Meetings, to be held on 25th October 2018 for Unilever N.V. shareholders and 26th October 2018 for Unilever Plc shareholders. The Boards recommend that shareholders vote in favour of the proposal.

    The Scheme is also subject to approval at a Court Meeting on 26th October 2018, for Unilever Plc.

    It is not yet known when the Scheme is expected to become effective, but is expected to be completed by the end of 2018. Once effective, the New Unilever shares will trade on the London Stock Exchange, where the Company will seek a premium listing and trade in British Pounds.

    Should you retain your holding of Unilever Plc, we will notify you upon receipt of further information from the company.

    For more information about the Scheme, please visit the Unilever website, https://www.unilever.com/investor-relations/
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