Non-GB registered instruments

I am new to fixed income investing, with a background in shares and funds.

All of my current investments are listed on the LSE – but I try to avoid GB registered share to avoid paying stamp duty (non-GB registered stocks are exempt from SDLT).

I wonder if you have come across any preferred shares or bonds that are equally registered in Jersey, Guernsey or elsewhere?

Many thanks,

Tony

Comments

  • Bonds do not ordinarily attract stamp duty. As for prefs I would concentrate on quality, risk and overall return rather than saving 0.5% in duty.
  • Totally agree with Beekay statement
    Bonds tend to have a greater spread than Preference shares, thus in essence cancelling out the stamp duty cost of 0.5% advantage.
    Trying to save on "Taxation", whether Stamp duty or otherwise tends to steer one into false economy - More important is security and the quality of the investment and having a good wide diversified portfolio
  • beekey, Shaunm: What is your favourite pref right now?

    I have just figured out that all bond trading is OTC anyways (no DMA) making short term tactical placements very expensive.

    Which leaves me with SDLT-exempts shares, if you can think of one?
  • I used to have RUSP which was listed in Jersey or Guernsey from memory as I remember I had to declare the foreign dividend on my tax return. However like the guys above I wouldn't buy it for tax reasons. If you want exposure to Russian warehouses with rouble rents and threat of sanctions then this is your baby!
  • My Favourite Pref shares at the the present are the cumulative AV.A & RSAB
    Both fairly safe with a reasonable yield
    The Aviva saga gave a "good investment opportunity" to the Prefs market
    The Prefs are held for long term income, and represent 22% of my total portfolio
    I also hold, GACA, LLPC, NWBD, SAN NTEA, ELLA
    I do not invest for short term trading
    I on a regular basis review yields, in particular for Orb bonds maturing in 12 to 18 months, if low I sell
  • Thanks Shaunm.

    Which platform or broker do you use to buy and sell Orb bonds If I may ask?

    Tony
  • p.s. I do not pay SDRT as a matter of principle - which rules out pretty much all prefs registered in the UK.

    ETFs are SDRT exempt and offer narrower bid-ask spreads...
  • edited May 2018
    yeah, returns and return of the investment far outweigh the cost or tax on the investment. obviously more active trading is not investment, there the frictional cost is very much on the par with the liquidity alpha you are trying to extract.

    Hargreaves, Selftrade, Saga Share Direct, Youinvest seems like the best options available.
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