Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

How to sell VCT Certificates

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
bernie
Posts: 40
Joined: June 28th, 2019, 8:33 pm
Has thanked: 39 times
Been thanked: 7 times

How to sell VCT Certificates

#383053

Postby bernie » February 2nd, 2021, 1:05 pm

Hello,

I have a few VCT certificates from last year.

I know I have to hold them for atleast 5 years. But when that time comes, how easy will they be to sell?

Thanks,

bernie.

Mainwaring
Lemon Pip
Posts: 80
Joined: November 4th, 2016, 7:57 am
Has thanked: 7 times
Been thanked: 46 times

Re: How to sell VCT Certificates

#383162

Postby Mainwaring » February 2nd, 2021, 7:02 pm

You will need to sell them through a stockbroker. You will probably need to open account with one to do this. Most VC houses will buyback your shares via your broker but at that time you are a seller and they are probably the only buyer.
You might wish to dematerialise the certificates into your stockbroker account as it can make the cost of selling cheaper.
There are a few brokers still operating on the high street, mine does, Redmayne Bentley. Some online brokers, platform brokers might still support the free certificate transfer and cheap dealing. You should research the whole exit process. Or you could just keep the shares if they are laying golden eggs in 4 years time.

bernie
Posts: 40
Joined: June 28th, 2019, 8:33 pm
Has thanked: 39 times
Been thanked: 7 times

Re: How to sell VCT Certificates

#383229

Postby bernie » February 2nd, 2021, 10:43 pm

Thanks Mainwaring. Redmayne Bently's office near Monument is near my office. Is it possible for clients to drop off certificates there to be dematerialised? How much do they charge for the service?

dealtn
Lemon Half
Posts: 6072
Joined: November 21st, 2016, 4:26 pm
Has thanked: 441 times
Been thanked: 2324 times

Re: How to sell VCT Certificates

#383285

Postby dealtn » February 3rd, 2021, 9:03 am

bernie wrote:Thanks Mainwaring. Redmayne Bently's office near Monument is near my office. Is it possible for clients to drop off certificates there to be dematerialised? How much do they charge for the service?


Is it not easier to ask them?

Kidman
Lemon Slice
Posts: 438
Joined: November 6th, 2016, 1:10 pm
Has thanked: 22 times
Been thanked: 136 times

Re: How to sell VCT Certificates

#383479

Postby Kidman » February 3rd, 2021, 10:06 pm

Bernie,

many of us have historically used Hargreaves Lansdown for certificated sales by lodging them in their nominee first. They also used to allow 'Bed and ISA', a commission free sell and transfer the funds into one's ISA held with them. Alas all their options have been suspended since March 2020 and there appears no sign of them resuming soon, if ever.

The other option I have seen here which looks good to me is Jarvis' https://www.x-o.co.uk/. Check out their website for all the details and fees.

bernie
Posts: 40
Joined: June 28th, 2019, 8:33 pm
Has thanked: 39 times
Been thanked: 7 times

Re: How to sell VCT Certificates

#383590

Postby bernie » February 4th, 2021, 10:54 am

Has anyone had any experience of using Barclays Smartinvestor for this purpose? I'm asking as I already have an account with them. Their online chat service informed me that I can lodge my certificates with them. But I'm not sure what else to ask.

Is this the process that I should try to follow?

1. Lodge my certificates with a stock broker.
Either
2a. Either wait for the VCT to announce a buyback, and ask the broker to take part in that (will this be very expensive, and charge different fees to what I can pay for normal share trading? e.g. I paid £6 to buy an ETF last week)
2b. Place a limit sell order in the order book, and hope it gets filled? How accurate are the price quotes I see online, such as this one for Albion https://www.hl.co.uk/shares/shares-sear ... vct-ord-1p? The current bid price is 62.5. can I realistically sell at that price?

Mainwaring
Lemon Pip
Posts: 80
Joined: November 4th, 2016, 7:57 am
Has thanked: 7 times
Been thanked: 46 times

Re: How to sell VCT Certificates

#383713

Postby Mainwaring » February 4th, 2021, 6:41 pm

Until 12 months ago I regularly popped into Redmayne Bentley with certificates and left with a receipt. They appear in my RB Nominee account a few days later. Unfortunately they are working from home and certainly my office remains closed. Not a problem as I have 3-4 years to do this and I’m sure we will all have the jab before then and back to normal. You can mail your certs to RB but I wouldn’t do that or see the need to do it now. Other brokers are available but I do note some online ones have suspended their service of accepting paper certs.....Covid I guess.

oxmatt
Lemon Pip
Posts: 69
Joined: November 5th, 2016, 6:54 am
Has thanked: 4 times
Been thanked: 21 times

Re: How to sell VCT Certificates

#383723

Postby oxmatt » February 4th, 2021, 7:34 pm

Similar to Kidman's experience I used to use the HL bed & ISA/SIPP until the current suspension of the service.

Now quite happy with using x-o.co.uk. They will lodge certificates for free and then just charge £5.95 to trade. Best way is to set up a 3m limit and then let them know you would like to be added to the buyback list - no extra charge for this and normally gets a slightly better price from my limited experience. No charge to withdraw funds and normally settle into bank account quickly.

I often check london stock exchange website to look at recent trade prices. E.g. for Albion (As mentioned above by Bernie) sales appear to be going through at 61 rather than 62.5 other than a few over 65 which I presume must have been purchases. So I think 62.5 seems unlikely to be achievable for a standard market sell.

bernie
Posts: 40
Joined: June 28th, 2019, 8:33 pm
Has thanked: 39 times
Been thanked: 7 times

Re: How to sell VCT Certificates

#383778

Postby bernie » February 4th, 2021, 11:42 pm

Mainwaring wrote:Until 12 months ago I regularly popped into Redmayne Bentley with certificates and left with a receipt. They appear in my RB Nominee account a few days later. Unfortunately they are working from home and certainly my office remains closed. Not a problem as I have 3-4 years to do this and I’m sure we will all have the jab before then and back to normal. You can mail your certs to RB but I wouldn’t do that or see the need to do it now. Other brokers are available but I do note some online ones have suspended their service of accepting paper certs.....Covid I guess.


The fees for Redmayne Bentley look high, though I prefer the idea of walking in to a broker to drop off the certificates.

According to this: https://www.redmayne.co.uk/RedmayneBent ... RB0024.pdf, it will cost £82.50, to sell a £5,000 share certificate. Compared to £5.95 with x-o.co.uk. Have you looked into transferring your shares out of Redmayne to somewhere else?

According to the Ancillary Charges page, it will cost £15 per stock to transfer out.

ukfire
Posts: 31
Joined: February 15th, 2020, 5:07 pm
Has thanked: 9 times
Been thanked: 9 times

Re: How to sell VCT Certificates

#383858

Postby ukfire » February 5th, 2021, 2:03 pm

Are there any disadvantages to depositing them with a regular stockbroker (dematerialisation) and then selling them online as I would any normal share?

Mainwaring
Lemon Pip
Posts: 80
Joined: November 4th, 2016, 7:57 am
Has thanked: 7 times
Been thanked: 46 times

Re: How to sell VCT Certificates

#384542

Postby Mainwaring » February 7th, 2021, 7:01 pm

Brokers sometimes charge more for dealing with your certificate. £10/20 in addition to the Sales Commission.


Return to “Venture Capital Trusts (VCT's)”

Who is online

Users browsing this forum: No registered users and 11 guests