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]

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]

quote:

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Originally posted by pajsh
SWIMBO also works for Boots

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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