Shell scrip dividend programme
Discussion
I'm attorney for my mother, who has a few Shell shares,and have just received a letter from Shell inviting her to join the 'Scrip Dividend Programme'. Can anyone suggest whether it is best to join or ignore it? (I know nothing about shares, or scrips either for that matter). Has anyone else had this letter?
Thanks!
Thanks!
I have been in a similar position recently being an executor for an estate. A script basically means that instead of receiving a dividend cheque you receive the same value in shares to increase the holding.
However, as you are dealing with shares in another persons name you would have to transfer them into your name once probate was granted if the estate is sufficiently large to require that. Then you can sell, retain as you deem and deal with the script issue if relevant. A solicitor would advise subject to the will and value of the estate.
Hope that helps alittle.
However, as you are dealing with shares in another persons name you would have to transfer them into your name once probate was granted if the estate is sufficiently large to require that. Then you can sell, retain as you deem and deal with the script issue if relevant. A solicitor would advise subject to the will and value of the estate.
Hope that helps alittle.
Thanks for the reply. This is called a 'scrip' not a script', if it makes any difference?
I think I'll go for it as it says that if I do nothing, future dividends will be subject to Dutch dividend witholding tax at 15%... actually no, it says 'to any applicable Dutch dividen witholding tax' - so it's not clear.
I think when it comes to winding up the estate all investments have to be sold; you can't just put them in someone else's name.
I think I'll go for it as it says that if I do nothing, future dividends will be subject to Dutch dividend witholding tax at 15%... actually no, it says 'to any applicable Dutch dividen witholding tax' - so it's not clear.
I think when it comes to winding up the estate all investments have to be sold; you can't just put them in someone else's name.
I seem to recall that they are issuing the dividend shares in the other category from that in which your main holding is issued (for me that's "A" shares when the main holding is in "B" shares - and the virtual payment is in USD) - which means that you will get a very small number (unless you're a huge shareholder) of shares different from the main ones you hold* - so dealing costs if / when you come to sell will be significant as each holding will be subject to the dealing charge. You'd be charged tax on the dividend "income" whether you take it as cash or shares and, I understand that the Dutch tax can be taken into account when filling in your UK return - EricMc will probably advise.
Were you / was she subscribing to the DRIP before being offered the SCRIP?
Re: small numbers of shares - *for example, the last dividend on 295 B shares was $123.90, which translated into 3 new A shares at $33.439 with $23.58 carried forward to the next dividend. After a year of similar dividends and share prices this would mean that one accumulated ~ 15 A shares worth about $400, which would mean that you would, if you liquidated all the holdings at a typical dealing charge of £10, pay £10 on $400 worth of A shares plus £10 on the ~£6000 worth of B shares on which the dividend was paid. The Dutch witholding tax is to be paid on dividends on your new A shares - which, unless you SCRIP them, will be paid in Euros, subject to the witholding tax. Of course they will accumulate so little dividend relative to the $33 cost of a share that it will presumably fester in the SCRIP client account for a couple of years until you've enough to buy another A share (unless it's added to the SCRIP surplus accumulating from your B share dividends) - all clear? Someone will tell me if I'm wrong!
Were you / was she subscribing to the DRIP before being offered the SCRIP?
Re: small numbers of shares - *for example, the last dividend on 295 B shares was $123.90, which translated into 3 new A shares at $33.439 with $23.58 carried forward to the next dividend. After a year of similar dividends and share prices this would mean that one accumulated ~ 15 A shares worth about $400, which would mean that you would, if you liquidated all the holdings at a typical dealing charge of £10, pay £10 on $400 worth of A shares plus £10 on the ~£6000 worth of B shares on which the dividend was paid. The Dutch witholding tax is to be paid on dividends on your new A shares - which, unless you SCRIP them, will be paid in Euros, subject to the witholding tax. Of course they will accumulate so little dividend relative to the $33 cost of a share that it will presumably fester in the SCRIP client account for a couple of years until you've enough to buy another A share (unless it's added to the SCRIP surplus accumulating from your B share dividends) - all clear? Someone will tell me if I'm wrong!
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