Tesco - TSCO - Share Chat

How many shares did you have on Friday and how many do you have now? That might give you a clue as to why your average has gone up.

I had 198, now down to 156

The actual payout day is the 26th Feb for those who thought Tesco were paying out today.

This sounds exactly right.
15 new shares are being issued for 19 old shares.

15 / 19 * 198 = 156.3

New share price is problem. Its showing me I bought at £2.83. Never did. With this “new share price”, I’m running at a loss suddenly

What price did you buy at?

You’ve have fewer shares now so your average will have gone up. To make up for the share consolidation you get a lump sum cash dividend.

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Reinvest the dividends

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Your purchase has likely been adjusted for the new holding.
The average price is the total amount you paid dividided by the amount of shares you have. You now have less shares but the amount you paid has not changed so the average is higher.

If your new average price per share is £2.83 it would make your old average about £2.23.

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Thanks for the explanation guys. I’m aware I’ll receive a lump sum dividend. I’ll decide if to reinvest or not

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No problem. These kind of stock consolidations with special dividends can have consequences for the everyday investor, adding to the £2k dividend limit with no benefit. National Grid carried out a similar exercise a few years ago.

This might be a stupid question. I had one share and now I have no shares due to the consolidation. I am meant to receive payment for my fractional share. This is meant to be deposited to my account. Will this payment count towards my cgt or dividend allowance? I have an isa so if it did it would be protected from tax. Could someone answer this please?

It’s only if you make a profit on the share that the question of Capital Gains Tax even needs to be asked. So that’s what you’d need to find out first. As you only had one share, even in the best case you can’t have made more than pennies in proft, so it’s likely that there will be effectively no impact on your tax allowance.

(I am not a lawyer, this is not financial advice, &etc)

You will get paid out for this one share

What does that mean? Have they effectively sold my share and hense my return loss or gain?

Yeah it says in the app message about the selling of your share

Is that just the same thing as if I sold the share back. I’m asking for tax reasons?

Thanks Sam

Appreciate you coming back. Look forward to some progress once you guys catch-up.

Cheers Alan

You won’t pay tax in your isa. Your one share has been sold and you will be paid the value of it. I wouldn’t worry about tax implications of this as one share is so insignificant that its nothing to worry about.

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Yes, it’s exactly the same as if you have chosen to sell.

If you held the share in an ISA then there is no tax to calculate either from capital gains or from dividends.

If you held outside an ISA then the capital gains on this would be added to all of your other non-sheltered gains and losses for the tax year.