few questions about shares

[TFU] Thegoon84

[TFU] Thegoon84

[TFU] Thegoon84

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Please dont flame me, this is an honest question….. i'm not trying to show off in anyway … So please no “fail look how much money I have”” replies please….

But basically my father in law past away a few years ago and this morning we received a letter with a cheque for £600 saying something about paying dividends…. We have 2500 shares in IMI (that’s all I know) I’ve looked on google and saw the share price is 896.00….. Could there be another IMI company share price?

Few questions:

1) Does that mean its 2500 x £8.96 or 0.896?
2) is it worth me keeping them in there for quite a while longer since as the economy is bit all over the shop?
3) How would I cash those shares in if need be?
4) Do I pay tax if cashed them in?
5) Any body got any advice?
 
Thegoon84 said:
Few questions:

1) Does that mean its 2500 x £8.96 or 0.896?
2) is it worth me keeping them in there for quite a while longer since as the economy is bit all over the shop?
3) How would I cash those shares in if need be?
4) Do I pay tax if cashed them in?
5) Any body got any advice?
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1) that is 2,500 x £8.96
2) depends how the company is performing, look at its past performance to get an idea if the price is low or high
3) you need to find the share broker that your relative has used and instruct them to sell and send the proceeds to you - in short contact the broker
4) you will be liable for tax yes, the same tax you would pay on your banking interest rate returns. If I am right you can get up to £8,000 profit tax free per year (that means 8,000 pounds over the buying price whatever that was). So if the price the shares were bought was much lower and you are at risk of getting taxed it might be wise to sell in short batches year over year if you don't need the money.
5) me!! actually, find an independent financial advisor to answer your questions with integrity, but always double-check with someone else before taking their advice.
 
Dividends are to put it simply a bonus paid to shareholders, the amount depends on the performance of the company, usually a few pence per share. You have the correct IMI shares, the dividend is nothing to do with the current share price.
Have a read here to give you a better understanding http://en.wikipedia.org/wiki/Dividend

As for what to do with the shares that's a tricky question, speak to a financial adviser but in the long run it's probably better to hang onto them.
 
1) £22,400 :)

2) Personally, I'd diversify into a fund or a variety of shares. At the moment, you're entirely dependent on a single share price - if that company does something silly and the market decides to run, you could lose out quite significantly.

3) As above, the broker.

4) Not sure about the tax question - normally you get taxed capital gains, but in the case of an inheritance, you've not made a profit as you've not made any initial investment. You should ask a tax specialist about whether you're liable for CGT, on the basis that you inherited the shares.

5) IFA for the win. Do your own research as well though.
 
Cheers for the replies guys, i'l defo take the advice on board!!

Looking at the share price from when they first opened their at an all time high!!!

http://www.google.co.uk/finance?client=ob&q=LON:IMI

Dont want to sound a idiot but i'd rather leave them in there, we have a fair wack in bonds and ISA's so prehaps i'l look into speaking to independent financial advisor as you guys have pointed out... be nice to watch something that is either making money or losing
 
For capital gains tax purposes, the base cost of the shares is the probate value - the value they stood at when your relative died. Any gain is calculated from that starting point. You have an annual exemption of £10,100 per year, so unless the shares had a probate value of £12,300, you could almost certainly sell now and pay no CGT.

In terms of receiving dividends, you'll almost certainly only pay tax on them if you are a higher rate taxpayer, as basic rate taxpayers don't pay tax on dividends. (It's more complex than that, technically speaking, but that should suffice for your purposes.)

The investment may well be declarable for benefits and tax credits purposes.

This is not tax advice, blah blah blah, don't sue me.
 
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vonhelmet said:
For capital gains tax purposes, the base cost of the shares is the probate value - the value they stood at when your relative died. Any gain is calculated from that starting point. You have an annual exemption of £10,100 per year, so unless the shares had a probate value of £12,300, you could almost certainly sell now and pay no CGT.

In terms of receiving dividends, you'll almost certainly only pay tax on them if you are a higher rate taxpayer, as basic rate taxpayers don't pay tax on dividends. (It's more complex than that, technically speaking, but that should suffice for your purposes.)

The investment may well be declarable for benefits and tax credits purposes.

This is not tax advice, blah blah blah, don't sue me.
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Cheers mate, my sister in law has just sold 700 of her’s after I told her haha!

Think I’l leave it a few days as you guys have said speak to right people.
 
Beware the "see an IFA" approach. Search for RDR - Retail Distribution Review for more information which will yield results on why there is so much tightening up on investment recommendation as opposed to product solution.

Not all IFAs are equal - far from it.

vonhelmet has done a really good job of explaining the likely situation whilst protecting you from page upon page of legislation.
 
Hatter The Mad said:
It is sad that you need to (and I understand why) beg people here not to flame you for having money or buying shares.
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Yeah its awful, i honestly try to avoid this section of the forums like a plague. I was waiting for the comment like “biggest look how much money I got fail thread ever” ….. its pathetic!!!

P.s: Shares went up 2.3% yesterday which means another £550 on top :D
 
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