The flotation of mutual insurer Standard Life is set to go ahead following a ‘yes’ vote, with 98 per cent of votes cast in favour of demutualization. The average windfall will be in the region of £1,500, roughly a third of the payout which would have been received had similar proposals a few years ago (which were then opposed by the insurer’s board) not been rejected.
Policyholders who are being issued shares will also be eligible to subscribe for shares at a discount and to bonus shares if they retain their shareholding for twelve months. The allocation of bonus shares will also apply to policy holders who subscribe for discounted shares on floatation.
Some windfalls will be much greater than the average. If you are in line for a significant share issue, we would recommend that you take professional advice as the shareholding will increase the value of your estate for Inheritance Tax purposes, any dividends may have Income Tax implications and a sale of the shares may create Capital Gains liabilities. The impact of all of these taxes may be able to be reduced or minimised with planning.
The deadline for share applications is 10 am on 5 July, 2006.
Standard Life Flotation Latest
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