millemg
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| posted on 18/5/07 at 08:54 AM |
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o/t - shares / loan notes question
My wife works for a company which is probably being taken over soon.
She has some shares in the company.
She has received 2 forms. One is a "form of direction" which looks like it's to vote for or against the take over.
The other one is a "form of election", which gives the option to elect to receive "loan notes" (whatever they are)
It looks a bit complicated, and I don't want to tick the wrong boxes.
Hope somebody knows something about this 
cheers in advance
[Edited on 18/5/07 by millemg]
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pajsh
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| posted on 18/5/07 at 09:33 AM |
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SWIMBO also works for Boots and I have the same dilemma.
From what I read briefly the other night I think you either get the cash (less tax etc) when the sale goes through or loan notes which you can then
invest but have to keep for 5 years, thereby saving the tax NIC etc.
She only works part time so I don't think it's a major issue.
I'd still be intersted in an answer.
[Edited on 18/5/07 by pajsh]
I used to be apathetic but now I just don't care.
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millemg
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| posted on 18/5/07 at 09:47 AM |
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quote:
Originally posted by pajsh
SWIMBO also works for Boots
How did you guess 
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brashhighlander
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| posted on 18/5/07 at 10:07 AM |
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It depends on the total value of shares your wife is getting. If it is under £9200 then as far as I am aware you shouldn't have to pay any tax
or NIC as it would be treated as Capital gains and not income.
If it is more then £9200 then you would be liable to capital gains tax at either 20% or 40% depending on your wifes other income levels.
If you have shares worth more than £9200 then probably convert to loan notes and then cash some in over a few years so that you avoid capital gains
tax.
Otherwise, take the money and run. Could put it towards some nice shiney new parts
If this is not right I am sure someone else will put me right
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