BAA is apparantly sold for 9.35 UKP. And my CGT planning has already used up my allowance. If I take the loan note option, I understand it's a paper transfer, so defers CGT. But I feel the buyers have paid soooo much at 27x earnings; and at LIBOR -0.5% for the loan note, I'm not happy.
I may take the loan note to avoid/defer CGT, but feel it is a junk bond at a mediocre return.
Questions:
- How liquid are the loan notes? Will I be able to call somewhere and say send me cash tomorrow?
- Any other feelings, etc on this whole situation ?
I have made other decisions in my life based on minimising taxes and each one has been a disaster, eg not selling BSkyB at £25 in ~2000 when I really wanted to.
Thanks, BAA investor