Recent Vodafone

kelbal

Hi, I have a minimal amount of Vodafone shares, from the original Eircom shares. I got a big wad of paperwork in the post this morning - a form to fill out in relation to "Return of Value" to shareholders. I have basically no participation in my shareholding, just let it tick away. Is this something I should be bothered about reading, completing & returning?

thanks

BrokenArrows

They are selling to Verizon.

In the same way as Eircom sold to Vodafone.

So if you want some cash and some Verizon shares then you don't have to do anything.

However if you want a clean getaway you will need to deal with the paperwork.

BrokenArrows

Good video here summarizing your options.

http://www.telegraph.co.uk/finance/personalfinance/investing/shares/10288456/Vodafone-how-can-shareholders-decide-what-to-do.html

euroboom13

If you don't do anything you will receive 1)a reduced vodafone holding 2)a one off payment of £0.30 per share and 3)some shares in Verizon

You can fill in the form and have your version shares sold and you will have 1)reduced holding in Vodafone 2)estimated cash payment of £1.05 per share[£0.30 +(£0.75verizon sale estimate value)]

Amount of share allotments in each company depends on share price of both on the day of transaction 21 Feb 2014

kelbal

thanks guys - I'll hold on to them so, in the hope my shares will turn into millions

RobertKK

If one bought Vodafone shares, they would also get this deal?

I know the price has risen a lot for Vodafone recently since the announcement of the sale of their stake in Verizon, back to Verizon.

Sonnenblumen

The documentation pack being circulated to VF shareholders is excellent, received mine today. Appears easy to follow, all key details are very well explained and illustrated but I will study closely.

Anyone any views on Verizon? I will do some research but any heads up would be appreciated.

RobertKK

Sonnenblumen wrote: »

The documentation pack being circulated to VF shareholders is excellent, received mine today. Appears easy to follow, all key details are very well explained and illustrated but I will study closely.

Anyone any views on Verizon? I will do some research but any heads up would be appreciated.

One gets very few Verizon shares, I think most Eircom IPO buyers will be able to count them on one hand.

Sonnenblumen

RobertKK wrote: »

One gets very few Verizon shares, I think most Eircom IPO buyers will be able to count them on one hand.

A rather lame comment, and I fail to see your point? For starters the Verizon share is c $45.00 ea, and the VF share is £ 2.30!

Each VF shareholder will for receive for every VF share, be offered £1.05(approx. £0.75 to buy Verizon shares) and the balance in cash.

Alternatively the shareholder can also opt not to take any shares but sell instead @ zero cost.

So whether you opt for shares + cash or cash only (differing taxes will apply) will be a function of the number of shares you own!

It is free money and you many also donate any proceeds!

RobertKK

Sonnenblumen wrote: »

A rather lame comment, and I fail to see your point? For starters the Verizon share is c $45.00 ea, and the VF share is £ 2.30!

Each VF shareholder will for receive for every VF share, be offered £1.05(approx. £0.75 to buy Verizon shares) and the balance in cash.

Alternatively the shareholder can also opt not to take any shares but sell instead @ zero cost.

So whether you opt for shares + cash or cash only (differing taxes will apply) will be a function of the number of shares you own!

It is free money and you many also donate any proceeds!

I am just thinking of the cost of selling (in lets say a couple of years after getting them) lets say you get two Verizon shares and lets say you use a cheaper than Irish broker and it cost $15 plus currency conversion fee, ok you could keep them and take the dividend.
That is all, and why I said count on one hand, I will get two Verizon shares and I think for most former Eircom shareholders who did nothing with the Vodafone shares they will be in the same position.
Like I would rather own more than two shares of Verizon as it is not exactly at the value of a Google share. It depends on what people intend on doing with the shares, whether they want a small amount or would rather the cash as you pointed out.

Sonnenblumen

RobertKK wrote: »

I am just thinking of the cost of selling (in lets say a couple of years after getting them) lets say you get two Verizon shares and lets say you use a cheaper than Irish broker and it cost $15 plus currency conversion fee, ok you could keep them and take the dividend.
That is all, and why I said count on one hand, I will get two Verizon shares and I think for most former Eircom shareholders who did nothing with the Vodafone shares they will be in the same position.
Like I would rather own more than two shares of Verizon as it is not exactly at the value of a Google share. It depends on what people intend on doing with the shares, whether they want a small amount or would rather the cash as you pointed out.

The Verizon shares do appear expensive and with no income (divi), I doubt many will want to retain them (myself included) but the main reason being US and CREST. I prefer Euro stocks and certificates. What I own I have and I prefer the income stream from shares too! There is a zero cost option available (but all proceeds will be subject to 50% Dirt/PRSI combo!). I'll probably use the cash to buy more Vodafone shares when the dust settles.

Cute Hoor

Verizon pay 4.5% Dividend, paid 4 times per year, increased year on year for the last 5 years, next dividend ($0.53) due on February 3rd

Edit: I'd expect this dividend to increase once they've got all of Verizon Wireless

Sonnenblumen

Cute Hoor wrote: »

Verizon pay 4.5% Dividend, paid 4 times per year, increased year on year for the last 5 years, next dividend ($0.53) due on February 3rd

Edit: I'd expect this dividend to increase once they've got all of Verizon Wireless

Yeah, thanks for pointing out my earlier error, 4.5% is a good divi.

1st dalkey dalkey

Would agree with RobertKK, in that most ex Eircom holders (myself included) will have relatively small entitlement to Verizon shares (numbers wise) and might be better off opting for fee free sale in this process. Unless, of course, you find when checking out Verizon that you want to invest further in it.
Many stories and projections around this space for the future. Verizon have taken on a lot of debt. There are other players in the US nibbling at their cake. Also, after this deal Vodafone will be a much smaller entity and may be target for takeover (AT&T rumoured to want to expand into the EU).
I will take the money and sit it out on this space for a while.

Andrew Campbell

Anyone got any views on what an Irish tax resident expecting to pay a lot of income tax in 2014 and no Capital gains tax should do regarding the B or C option?
I expect it would be better to opt for the capital gain option as this will take advantage of the €1270 exemption and then be taxed at 20% instead of the higher rate of income tax.....is this everyone elses view also?

Cute Hoor

Andrew Campbell wrote: »

Anyone got any views on what an Irish tax resident expecting to pay a lot of income tax in 2014 and no Capital gains tax should do regarding the B or C option?
I expect it would be better to opt for the capital gain option as this will take advantage of the €1270 exemption and then be taxed at 20% instead of the higher rate of income tax.....is this everyone elses view also?

The Capital Gains route would certainly appear to be the most tax efficient route for you (and probably for most people).

Unfortunately the rate of CGT has been increased to 33%. The first €1,270 is still exempt

A New earth

Would I be correct in saying that someone who got their shares from the original Eircom issue will not have any Capital Gains Tax to pay as they are still in a loss situation?

Kevo81

Hi all, myself and some family members have 280 Vodafone shares each from the eircom days, I'm looking into selling them off but we don't seem to have the share certificates. My Dad who bought all the shares originally doesn't remember the last share certificates that were issued arriving - he's usually spot on and files everything away!

I've read a few posts on the internet with people having the same problem, my question is are we better to fill out forms Vodafone sent out and let Vodafone sell our Verizon shares and then sell off the shares from the new smaller Vodafone or should we just bite the bullet and get our share certificates reissued?

I'm just a bit reluctant to pay Computershare to reissue us with new certificates given that I don't think they sent us the original in the first place.

Any advice would be greatly appreciated.

Cheers,

Cute Hoor

Kevo81 wrote: »

Hi all, myself and some family members have 280 Vodafone shares each from the eircom days, I'm looking into selling them off but we don't seem to have the share certificates. My Dad who bought all the shares originally doesn't remember the last share certificates that were issued arriving - he's usually spot on and files everything away!

I've read a few posts on the internet with people having the same problem, my question is are we better to fill out forms Vodafone sent out and let Vodafone sell our Verizon shares and then sell off the shares from the new smaller Vodafone or should we just bite the bullet and get our share certificates reissued?

I'm just a bit reluctant to pay Computershare to reissue us with new certificates given that I don't think they sent us the original in the first place.

Any advice would be greatly appreciated.

Cheers,

You don't need your original share certificates. The Vodafone documentation should say how many shares you own, unless you are disputing this figure then you don't need them.

Kevo81

Cute Hoor wrote: »

You don't need your original share certificates. The Vodafone documentation should say how many shares you own, unless you are disputing this figure then you don't need them.

Great, thanks Cute Hoor. Does that mean I'm free to sell my shares - I thought I needed my share certificate to be able to do this.

I don't want to wait for the Verizon deal to go through - I'm sorry if you've already answered that question in the above

Cheers,

Cute Hoor

Kevo81 wrote: »

Great, thanks Cute Hoor. Does that mean I'm free to sell my shares - I thought I needed my share certificate to be able to do this.

I don't want to wait for the Verizon deal to go through - I'm sorry if you've already answered that question in the above

Cheers,

You will have received 2 White Forms (attached I think).

The first form is entitled 'Form of Election: Return of Value 2014', in Box A (top right hand corner of this form) is a line 'Number of ordinary shares held by you, this will tell you how many shares you currently hold. Once you are happy with that figure you don't need to worry about whether you have the shares or not.

In the main body of that form you have a number of sections. Section 3 gives you the option of keeping your shares in a Vodafone Share Account with Computershare or receiving a physical Share Certificate (your choice). Once you get confirmation that everything has been completed you can tear up your old shares.

There is a second form 'Dealing Form' that you fill in if you wish to immediately sell your entitlement to Verizon shares (for many of the original Eircom shareholders this may be the optimum option as you will probably be entitled to very few Verizon shares). You need to make up your own mind on whether you wish to receive the Verizon shares.

If you wanted to sell you're Vodafone shares before the Verizon deal goes through, and you don't have the certs then you're going to have to get on to Computershare and get replacement certs, a lot of hassle and probably at a cost. Why not wait and avoid that hassle?

Hope this helps

RobertKK

Cantor Fitzgerald are advising to take the deal on offer, and keep the Verizon shares.

Kristopherus

RobertKK wrote: »

Cantor Fitzgerald are advising to take the deal on offer, and keep the Verizon shares.

I'd be very slow to take the Verizon shares if, as has been posted above, the number of Verizon shares will be small. Accepting these shares means having to make a return annually (Form W-8BEN) to the US authorities. That prospect alone will make up the minds of the thousands of shareholders who have nothing else but a small no. of Vodafone shares.

Tow

A New earth wrote: »

Would I be correct in saying that someone who got their shares from the original Eircom issue will not have any Capital Gains Tax to pay as they are still in a loss situation?

Exactly my thoughts.
Does anyone have the calculations from the original Eircom Share purchase price?
There are some back of the envelope calculations on Askaboutmoney, but that is about it. If someone only ever had Eircom shares, they are already carrying forward an additional loss from the Eircom sale to Valentia.

Donsey

Hi, anyone know how I calculate how many verizon shares one gets for every Vodafone share they currently own?

Cute Hoor

Kristopherus wrote: »

I'd be very slow to take the Verizon shares if, as has been posted above, the number of Verizon shares will be small. Accepting these shares means having to make a return annually (Form W-8BEN) to the US authorities. That prospect alone will make up the minds of the thousands of shareholders who have nothing else but a small no. of Vodafone shares.

If you are getting a minimal number of Verizon shares then imo you would be as well off to take the money instead. I'm not sure about having to fill in a W-8BEN every year, the last time I filled one in was 3 years ago, it's just a declaration that you have Foreign Status and are liable for US Withholding tax, the withholding tax is then automatically deducted from your dividends - this is as I understand it. I would expect the Verizon dividends to improve post deal and, given a fair wind, I'd expect the SP to be positive as well.

Sonnenblumen

Tow wrote: »

Exactly my thoughts.
Does anyone have the calculations from the original Eircom Share purchase price?
There are some back of the envelope calculations on Askaboutmoney, but that is about it. If someone only ever had Eircom shares, they are already carrying forward an additional loss from the Eircom sale to Valentia.

It's complicated and because of the options available as part of the offer, the tax implications are also fuzzy, but it was really well explained in the business pages of last Sunday's Sunday Times.

Cute Hoor

Donsey wrote: »

Hi, anyone know how I calculate how many verizon shares one gets for every Vodafone share they currently own?

The exact amount won't be known until deal time, but if you can today's Verizon share price $47.03 you will get roughly 26 Verizon shares for every 1,000 Vodafone shares you hold.

(1000 * $1.22) / $47.03 = 26

That's as I understand it

trojan48

kelbal wrote: »

Hi, I have a minimal amount of Vodafone shares, from the original Eircom shares. I got a big wad of paperwork in the post this morning - a form to fill out in relation to "Return of Value" to shareholders. I have basically no participation in my shareholding, just let it tick away. Is this something I should be bothered about reading, completing & returning?

thanks

Is this 'Return of Value' really a return of value?

I have 4000 VOD @£;2.33 currently worth £9354,
Cash return on value 4000 x £0.30 =£1200.00
Verizon return on value(cash) 4000 x £0.75 = £3000.00

Total cash return of value £4200.00 less 20% tax = £3360

But Consolidation of 2 existing shares for one new share means my Vod share holding would be 2000 x £2.33 = £4660.00

This means my holding would be worth £4660.00 + £3360 = £8020.00

This means a loss in value to me of £1364.00

Is there some thing wrong with my maths?

euroboom13

trojan48 wrote: »

Is this 'Return of Value' really a return of value?

I have 4000 VOD @£;2.33 currently worth £9354,
Cash return on value 4000 x £0.30 =£1200.00
Verizon return on value(cash) 4000 x £0.75 = £3000.00

Total cash return of value £4200.00 less 20% tax = £3360

But Consolidation of 2 existing shares for one new share means my Vod share holding would be 2000 x £2.33 = £4660.00

This means my holding would be worth £4660.00 + £3360 = £8020.00

This means a loss in value to me of £1364.00

Is there some thing wrong with my maths?

if you sold your holding straight you would pay tax too...£9354 -tax due (or else you are pay tax on the sold holding not due) deal was worked out to be reasonably cost neutral ,

filbert the fox

euroboom13 wrote: »

if you sold your holding straight you would pay tax too...£9354 -tax due (or else you are pay tax on the sold holding not due) deal was worked out to be reasonably cost neutral ,

Okay, can someone answer a simple question. Please...

For someone with less than 200 shares in Vodafone does the current offer result in a gain of some sort?
Otherwise, for such a small holding disposing of the Vodafone shares now less investercentre commission is probably the most efficient way of "getting out" of this business!

trojan48

euroboom13 wrote: »

if you sold your holding straight you would pay tax too...£9354 -tax due (or else you are pay tax on the sold holding not due) deal was worked out to be reasonably cost neutral ,

Thanks for your comment

mmmmm, tax only due on profit of share holding, not the deal I thought it was, thanks for the confirmation,

Think I would be better of selling prior to deal, repurchasing after deal, that way would still have approx 4000 shares therefore be able to obtain dividend on 4000 instead of 2000 shares.

amber2

Tow wrote: »

Exactly my thoughts.
Does anyone have the calculations from the original Eircom Share purchase price?
There are some back of the envelope calculations on Askaboutmoney, but that is about it. If someone only ever had Eircom shares, they are already carrying forward an additional loss from the Eircom sale to Valentia.

Have 1277 Vodafone shares which myself & my husband bought back in 1999 Eircom at the time, don't remember the share purchase price but as far as I can remember we purchased IR£6000 worth and have taken the share option instead of dividends. On the election form tax income option is selected. As I haven't a bulls notion about shares I am wondering is this the best option for us.

Also I would ideally like to get rid of all of these shares and am opting to sell my Verizon entitlement but where does that leave me with Vodafone shares, I don't want a share account or a share certificate I would like rid of them all but from the paperwork this isn't an option. Also I'm presuming there is an annual charge to maintain the Vodafone share account

As regards the income tax part can this be reclaimed as I am currently out of work since Oct 13.

Morleystreet

So would below logic be correct - find it very confusing really!

Have 350 Vodafone shares.

Sell today => 350 shares * €2.88 (approx share price) = €1008 (minus any selling charges etc).

Hold for deal and then sell =>

350 shares * €1.25 (cash+Verizon) = €437.50 And
175 voda shares * €2.88 = €504
Total = €941.50 minus any selling charges etc

So sell now and sell after is about same value ? Is that about right? (ignoring share price fluctuations).

Is the 175 shares above correct - ie ur left with half the amount of voda shares after the deal?

Any help much appreciated on explaining this?

trojan48

amber2 wrote: »

Have 1277 Vodafone shares which myself & my husband bought back in 1999 Eircom at the time, don't remember the share purchase price but as far as I can remember we purchased IR£6000 worth and have taken the share option instead of dividends. On the election form tax income option is selected. As I haven't a bulls notion about shares I am wondering is this the best option for us.

Also I would ideally like to get rid of all of these shares and am opting to sell my Verizon entitlement but where does that leave me with Vodafone shares, I don't want a share account or a share certificate I would like rid of them all but from the paperwork this isn't an option. Also I'm presuming there is an annual charge to maintain the Vodafone share account

As regards the income tax part can this be reclaimed as I am currently out of work since Oct 13.

Don't see why you can not just sell them now - the deal has not been confirmed as yet. I am selling my 4000 tomorrow and buying BT. At least I should be able to buy back 4000 VOD after deal and benefit from 4000 times dividend or else I will only end up with 2000 VOD. Verizon no benefit to me.

Tow

Revenue have issued an ebrief today on the 'Tax Treatment of Return of Value to Vodafone Shareholders'

http://www.revenue.ie/en/practitioner/ebrief/2014/no-022014.html

Good timing too, as today the last day for the forms to be returned (arrive) back to the UK.

Tow

Summary:

CGT:
Based on 1000 shares from the initial Eircom flotation:

Subject to final figures becoming available, shareholders could have a loss of €928 (2,178-1,250), as in the example above, which would be available to offset against other chargeable gains (if any) or, if unused, be carried forward to be offset against chargeable gains in the future.

In other words you pay no tax and have a loss to carry forward.

Income Tax:
You pay PAYE, PRSI and USC on the lot.

sawdoubters

you need to hold them until after 21st feb to get benefit of Verizon sale


Vodafone have announced that following the completion of the deal they intend to carry out a return of capital to shareholders, partly in cash and partly in Verizon shares, totalling approximately £51.4bn. Shareholders will not be able to mix the amount of cash and new Verizon shares they are entitled to receive, the ratios will be set by Vodafone. There will also be a consolidation of Vodafone's Ordinary shares at a ratio to be determined. Vodafone will announce the return of capital and consolidation ratios on 19th February 2014.


Shareholders will be offered a mix of Verizon shares and cash for each Vodafone share held but we will not know the exact amounts until 21st February 2014. The ratios will be calculated based on the market value of the companies at the time. If you hold Vodafone shares in a Redmayne-Bentley nominee account, the new shares in Verizon and Vodafone will be credited to accounts on or around 25th February 2014 and the cash proceeds will be credited to accounts on or around 5th March 2014.


Approval of the proposals will be required at two meetings, a Court Meeting and a General Meeting of the Company, both to be held on 28th January 2014. Shareholders are strongly encouraged to exercise their voting rights.

The type of account(s) in which you hold Vodafone shares will determine exactly what options are available and what you will need to do. Please see the table below for more details.

If you hold Vodafone shares in certificated form, you will receive information directly from the registrar and will need to respond directly to the registrar with your election.

Sonnenblumen

The more I look at this offer, the more I think it is a bad deal for shareholders.

Currently these shares < 50% Eircom original deal.

The offer is roughly returning (Verizon shares + cash) equivalent to half of the current share value to shareholders. The other residual half is expected to be 50% of current value and will be consolidated on a 2:1 basis (so no change there) is being returned to shareholders.

If you sell an undervalued share why is there a Income tax, PRSI and CGT liability? This is not a gain, its an income from a transaction involving loss making shares?

On the other hand, accepting Verizon shares + cash will (not) be subject to CGT but because of there is a loss here which can be carried forward.

The obvious options are sell the lot now, or accept Verizon +part cash and then sell the lot later.

Am I missing something?

Selling the lot now is beginning to look more appealing?

Kristopherus

Cute Hoor wrote: »

If you are getting a minimal number of Verizon shares then imo you would be as well off to take the money instead. I'm not sure about having to fill in a W-8BEN every year, the last time I filled one in was 3 years ago, it's just a declaration that you have Foreign Status and are liable for US Withholding tax, the withholding tax is then automatically deducted from your dividends - this is as I understand it. I would expect the Verizon dividends to improve post deal and, given a fair wind, I'd expect the SP to be positive as well.

Just got an email from FXCM (robbing b**t**ds:mad:) telling me that the W-8BEN form that I completed last year had expired on 31/12/2013, and to submit a form for 2014.

trojan48

Sonnenblumen wrote: »

The more I look at this offer, the more I think it is a bad deal for shareholders.

Currently these shares < 50% Eircom original deal.

The offer is roughly returning (Verizon shares + cash) equivalent to half of the current share value to shareholders. The other residual half is expected to be 50% of current value and will be consolidated on a 2:1 basis (so no change there) is being returned to shareholders.

If you sell an undervalued share why is there a Income tax, PRSI and CGT liability? This is not a gain, its an income from a transaction involving loss making shares?

On the other hand, accepting Verizon shares + cash will (not) be subject to CGT but because of there is a loss here which can be carried forward.

The obvious options are sell the lot now, or accept Verizon +part cash and then sell the lot later.

Am I missing something?

Selling the lot now is beginning to look more appealing?

Sold my 4000 today - there is no true value for the share holder, VOD stands to gain in reduction of shares 2 to 1 with 50% reduction in future dividend pay outs - ridiculous deal

Cute Hoor

trojan48 wrote: »

Sold my 4000 today - there is no true value for the share holder, VOD stands to gain in reduction of shares 2 to 1 with 50% reduction in future dividend pay outs - ridiculous deal

I'm not so sure about the validity of the 50% reduction in future dividend pay outs, have Vodafone said this, Verizon Wireless dividend payments to Vodafone have been almost as rare as hen's teeth, so the loss of Verizon Wireless is unlikely to have a 50% impact on the Vodafone dividend. Don't forget also that Vodafone are getting the 23% Verizon shareholding in Vodafone's Italian job, and they Vodafone are keeping a reasonably significant wedge of cash something like £23bn for future investment, which will obviously be used to add value to the company.

My own view, post deal and share reduction the Vodafone share price will roughly be as now, but will increase gradually but reasonably significantly from there, the dividend won't be halved, reduced obviously. AT&T sniffing around in the background won't do the Vodafone sp any harm either. I'd expect the Verizon shares to improve as well with the the freedom to do what they will without the pesky Brits involvement in their business.

All of the above assuming a fair wind for shares in general of course

Will be interesting to see what happens.

Edit: Of course Vodafone standing to gain means Vodafone shareholders standing to gain, Vodafone is owned by it's shareholders

trojan48

Cute Hoor wrote: »

I'm not so sure about the validity of the 50% reduction in future dividend pay outs, have Vodafone said this, Verizon Wireless dividend payments to Vodafone have been almost as rare as hen's teeth, so the loss of Verizon Wireless is unlikely to have a 50% impact on the Vodafone dividend. Don't forget also that Vodafone are getting the 23% Verizon shareholding in Vodafone's Italian job, and they Vodafone are keeping a reasonably significant wedge of cash something like £23bn for future investment, which will obviously be used to add value to the company.

My own view, post deal and share reduction the Vodafone share price will roughly be as now, but will increase gradually but reasonably significantly from there, the dividend won't be halved, reduced obviously. AT&T sniffing around in the background won't do the Vodafone sp any harm either. I'd expect the Verizon shares to improve as well with the the freedom to do what they will without the pesky Brits involvement in their business.



All of the above assuming a fair wind for shares in general of course

Will be interesting to see what happens.

Edit: Of course Vodafone standing to gain means Vodafone shareholders standing to gain, Vodafone is owned by it's shareholders

mmmm, assuming consolidation of 2 shares for one you will only have 50% of Vodafone shares that you now own. Therefore post deal you will only get 50% of dividend.

I will buy back into Voda post deal and repurchase the 4000 shares I sold, at roughly the same price, thereby maintaining my entitlement to dividend on 4000 shares and not 2000 if I stuck with the deal.

I think VOD are a great company but this deal is less benefit to shareholders, with all the cash they made they really should have coughed up a super dividend to shareholders without the consolidation like Natixis did last year.

When shareholders really cop on to what is happening re the deal VOD is really going to fall in price. Especially as VOD are increasing dividend post deal !!!

By the way I am one of those 'Pesky Brits' you mentioned and certainly did not like the prospect of owning Verizon in its current debt liabilities !!!

onemanband

Kristopherus wrote: »

Just got an email from FXCM (robbing b**t**ds:mad:) telling me that the W-8BEN form that I completed last year had expired on 31/12/2013, and to submit a form for 2014.

W-8BEN's last for 3 years

Deco99

Hi,

Heard bout this on radio, rang my parents who have about 400 shares. They got the letters but didnt even read them. Today is january 21st so what do they need to do before the january 26th deadline? from what i have read on this forum, the easiest way of maximising value (and not having hassle because they obviously dont pay attention) would be to elect the dividend as capital gains and sell the verizon shares, whilst holding on to the reduced vodafone shares? As the deadline is close by can this be done online?

niceview

Hi,

I have a scenario somewhat similar to the above poster. My parents sent the letter off yesterday but it seems they didn't tick capital gains tax and apparently it is automatically selected that tax will be taken on an income basis? They heard on the radio earlier you should tick capital gains tax.

Is there anyway of changing from income tax to capital gains? Can it be done online or over the phone? Thanks

Deco99

ok, looks like online isnt really an option, passwords and registering and stuff. got them to fill in the form, elect to sell verizon, receive as capital not income and did not request a vodafone share cert.

Any of this the wrong thing to do? Not thousands unfortunately but worth filling in right i imagine.

amber2

Deco99 wrote: »

Hi,

Heard bout this on radio, rang my parents who have about 400 shares. They got the letters but didnt even read them. Today is january 21st so what do they need to do before the january 26th deadline? from what i have read on this forum, the easiest way of maximising value (and not having hassle because they obviously dont pay attention) would be to elect the dividend as capital gains and sell the verizon shares, whilst holding on to the reduced vodafone shares? As the deadline is close by can this be done online?

As far as I know voting in the meeting by proxy closing date to be in the UK is the 26th that's the yellow and blue form the white form which is the income tax vs capital gains and Vodafone share account and Verizon shares is 20th of February is the deadline. The latter has to be posted but the yellow and blue forms can be done online with the PIN number.

Deco99

Thanks, White form posted. How important is the proxy voting, it automatically defaults to the chairmen who votes yes so I can only assume this doesnt need to be touched unless they wanted to vote no, which I assume they dont want to do that.

amber2

Deco99 wrote: »

Thanks, White form posted. How important is the proxy voting, it automatically defaults to the chairmen who votes yes so I can only assume this doesnt need to be touched unless they wanted to vote no, which I assume they dont want to do that.

I was told its important to vote but seeing as I know absolutely nothing about shares and am just about able to understand the white form, I will forego the Proxy voting. I did select the Capital Gains option as the shares are in joint names and will benefit from a capital gains allowance for each person named on the cert.

Seve OB

Good article, but anyone got any idea what the ABCDEFG they refer to is? I seem to have a different form as mine has numbers 1through 5

http://www.independent.ie/business/irish/tips-for-vodafone-shareholders-to-avoid-paying-extra-tax-29896878.html