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IAG Rights issue RRS feed

  • Question

  • I hold IAG shares and today I received the rights allocation of 1 Right for each share held. I decided not to participate in purchasing the shares offered in the rights and sold them for £X. Obviously no "shares" were sold.

    How do I record this in Money please? Under Investment Activity (drop down menu), Rights do not appear. 

    Thursday, September 17, 2020 6:09 PM

All replies

  • What I did was create a dummy investment named Rights.  I recorded a buy for the appropriate account with zero cost and then recorded the sale with the correct gross and commissions/fees.

    It subsequently occurred to me that maybe this could be treated as an option but I never pursued that.

    Thursday, September 17, 2020 8:28 PM
  • What I did was create a dummy investment named Rights.  I recorded a buy for the appropriate account with zero cost and then recorded the sale with the correct gross and commissions/fees.

    It subsequently occurred to me that maybe this could be treated as an option but I never pursued that.

    I actually tried "Return of capital" option and so far seems to be ok. I think your way seems to be better.
    Friday, September 18, 2020 9:08 AM
  • I don't know anything about UK tax law but doing it that way in the US would lead to two problems:

        The first is that MS Money would not considere the money received from the sale as a taxable event for this year.  If it shows up in the broker's tax report your tax agency will probably wan tot know why you did not declare it.  We call this tax evasion.

         The second is that when you finally do sell any of the actual IAG chars, MS Money will report a larger than actual gain since you have reduced the basis.  Over-reporting income is not a crime, just expensive..

     

    Friday, September 18, 2020 5:00 PM