I have received an e-mail from DeGiro, see below, above my Ryanair shares, which are listed on the LSE.
Can I simply sell the shares, and on the same day, spend the same money to buy them on the ISE?
There are capital gains (on paper), of maybe 10k.
Is that a gain for CGT purposes?
I have heard of the B&B rule, I am not 100% sure about it.
Thanks.
Important information about Brexit and your position(s)
Share trading obligation takes place 1 January 2021
Dear Investor,
We are contacting you as you currently have a position on the London Stock Exchange (LSE) with a European Union (EU) ISIN that is dual-listed on another European exchange, which will be impacted when the EU trading obligation for shares (STO) takes effect as of 1 January 2021 as a result of Brexit.
We have previously informed you of this trading obligation, but with this e-mail, we wish to remind you of the details of the STO and your options in regards to your position(s).
Share Trading obligation for dual-listed shares
Due to EU regulations, specifically the Markets in Financial Instruments Regulation (MiFIR), some products that are listed on an EU/EEA trading venue cannot be traded on a non-European (“third-country”) trading venue. As it stands, the European Commission has not yet granted the LSE an equivalence status. The STO will therefore take effect as of 1 January 2021.
The European Securities and Markets Authority (ESMA) has published a statement, which goes into more detail about the STO and the products that are impacted. The list of affected products that our clients, including you, have one or more positions can be found here. Please be aware that we have closed all products within the scope of the obligation, so you can close your position until 1 January 2021 but you cannot increase it.
Options for your dual-listed shares in the scope of the STO
As mentioned, the trading obligation will take effect as of 1 January 2021. Below are your options for your investment(s) that are in the scope of the obligation:
-Sell before 1 January 2021: Sell your shares prior to the trading obligation taking effect. The regular transaction fee as per our Fee Schedule for selling on the LSE would be incurred.
-Transfer: Transfer your shares to the European equivalent exchange. If you choose this option and send an e-mail to ca@degiro.ie before 15 January 2020 requesting to transfer your shares to an EU listing, we will process the transfer free of charge. Please keep in mind that we cannot guarantee that the transfer will be successful. Additionally, a transfer can take a few days to a few weeks to complete. After 15 January 2020, it will still be possible for you to request a transfer of your shares to a European Exchange. In this case, the fees would be around €25. Depending on the product, a stamp duty of 1.5% could be applicable.
-Do nothing: You are able to hold onto your shares. Due to the uncertainty around this matter, it is hard to say what could happen in the future. However, you do have the option to wait and see.
If you are unsure which position(s) you have that are in the scope of the STO, you can check your portfolio within the platform while referencing the list of impacted products. If you would like to find out the European equivalent exchange that the product trades on, the best way to find out is by entering the product’s ISIN code in the search bar in the platform.
As an investor, what you choose to do with your investments is entirely up to your discretion. We are an execution-only broker and therefore we are not allowed to provide advisory services of any kind. However, if you have any general questions pertaining to this matter, please feel free to contact our Service Desk. We are always happy to assist you.
Kind regards,
DEGIRO
Can I simply sell the shares, and on the same day, spend the same money to buy them on the ISE?
There are capital gains (on paper), of maybe 10k.
Is that a gain for CGT purposes?
I have heard of the B&B rule, I am not 100% sure about it.
Thanks.
Important information about Brexit and your position(s)
Share trading obligation takes place 1 January 2021
Dear Investor,
We are contacting you as you currently have a position on the London Stock Exchange (LSE) with a European Union (EU) ISIN that is dual-listed on another European exchange, which will be impacted when the EU trading obligation for shares (STO) takes effect as of 1 January 2021 as a result of Brexit.
We have previously informed you of this trading obligation, but with this e-mail, we wish to remind you of the details of the STO and your options in regards to your position(s).
Share Trading obligation for dual-listed shares
Due to EU regulations, specifically the Markets in Financial Instruments Regulation (MiFIR), some products that are listed on an EU/EEA trading venue cannot be traded on a non-European (“third-country”) trading venue. As it stands, the European Commission has not yet granted the LSE an equivalence status. The STO will therefore take effect as of 1 January 2021.
The European Securities and Markets Authority (ESMA) has published a statement, which goes into more detail about the STO and the products that are impacted. The list of affected products that our clients, including you, have one or more positions can be found here. Please be aware that we have closed all products within the scope of the obligation, so you can close your position until 1 January 2021 but you cannot increase it.
Options for your dual-listed shares in the scope of the STO
As mentioned, the trading obligation will take effect as of 1 January 2021. Below are your options for your investment(s) that are in the scope of the obligation:
-Sell before 1 January 2021: Sell your shares prior to the trading obligation taking effect. The regular transaction fee as per our Fee Schedule for selling on the LSE would be incurred.
-Transfer: Transfer your shares to the European equivalent exchange. If you choose this option and send an e-mail to ca@degiro.ie before 15 January 2020 requesting to transfer your shares to an EU listing, we will process the transfer free of charge. Please keep in mind that we cannot guarantee that the transfer will be successful. Additionally, a transfer can take a few days to a few weeks to complete. After 15 January 2020, it will still be possible for you to request a transfer of your shares to a European Exchange. In this case, the fees would be around €25. Depending on the product, a stamp duty of 1.5% could be applicable.
-Do nothing: You are able to hold onto your shares. Due to the uncertainty around this matter, it is hard to say what could happen in the future. However, you do have the option to wait and see.
If you are unsure which position(s) you have that are in the scope of the STO, you can check your portfolio within the platform while referencing the list of impacted products. If you would like to find out the European equivalent exchange that the product trades on, the best way to find out is by entering the product’s ISIN code in the search bar in the platform.
As an investor, what you choose to do with your investments is entirely up to your discretion. We are an execution-only broker and therefore we are not allowed to provide advisory services of any kind. However, if you have any general questions pertaining to this matter, please feel free to contact our Service Desk. We are always happy to assist you.
Kind regards,
DEGIRO