I'm a shareholder in Rolls-Royce and have received notification that Rolls-Royce are proposing to cease paying dividends and instead issue "B shares".
There's some information about this at
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I've been trying to work out the effect of this on me. I think that if this proposal passes
1) It won't change the amount of money I receive. Dividends are liable to income tax but come with a tax credit. The proposed scheme is subject to CGT.
2) Will give me a CGT gain thereby using part of my CGT allowance.
3) Will increase the amount of gain liable to CGT when I finally sell my existing shares.
4) Will make the calculation of the CGT gain more complicated when I finally sell my existing shares.
What does the group think of this?