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TUI - just topped up.

Practical discussions about equity High-Yield Portfolios (HYP) for income
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OLTB
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TUI - just topped up.

#201533

Postby OLTB » February 15th, 2019, 11:33 am

Morning all

As above really - I sold one of my IT funds (Edinburgh Worldwide) as it had made 27% and reinvested this into my HYP topping up TUI to the average HYP holding value as it has fallen so far.

I am aware that I wont see any dividend now until next February, but I am in this for the long run and I still see people taking holidays over the coming years. The dividend yield of 7.86% (according to dividend data, not taking into account the German tax) is what I wanted to secure.

I will re-invest funds back into my IT fund when capital available later this year.

:?

Cheers, OLTB.

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Re: TUI - just topped up.

#201564

Postby moorfield » February 15th, 2019, 1:27 pm

OLTB wrote: The dividend yield of 7.86% (according to dividend data, not taking into account the German tax) is what I wanted to secure.


TUI presents an interesting anomaly - in practical terms one should measure the dividend net of tax presumably. Do you know if the dividend tax can be reclaimed in SIPPs using the W-8BEN forms ? And IIRC part of the tax is a German "reunification" surcharge (I wonder how Leave-voting HYPsters feel about that :P) ? I was put off TUI a little for that reason, and also it's accounts are rather nebulous (they don't publish a cashflow statement), but at current yield I may be tempted to acquire for the long term ...

OLTB
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Re: TUI - just topped up.

#201576

Postby OLTB » February 15th, 2019, 2:22 pm

moorfield wrote:Do you know if the dividend tax can be reclaimed in SIPPs using the W-8BEN forms ? And IIRC part of the tax is a German "reunification" surcharge (I wonder how Leave-voting HYPsters feel about that :P) ?


Hi moorfield

I don't think that the tax can be reclaimed (it's already in my HL SIPP) and yes, there is a 5.5% 'solidarity surcharge', comrades, on the 25% withholding tax (26.375% overall) which I believe is an historical tax dating back to German reunification in the early 90's.

Cheers, OLTB.

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Re: TUI - just topped up.

#201587

Postby PinkDalek » February 15th, 2019, 3:09 pm

Regarding the emboldened part below.

OLTB wrote:
moorfield wrote:Do you know if the dividend tax can be reclaimed in SIPPs using the W-8BEN forms ? And IIRC part of the tax is a German "reunification" surcharge ... ?


Hi moorfield

I don't think that the tax can be reclaimed (it's already in my HL SIPP) and yes, there is a 5.5% 'solidarity surcharge', comrades, on the 25% withholding tax (26.375% overall) which I believe is an historical tax dating back to German reunification in the early 90's.

Cheers, OLTB.



The German Withholding Tax does seem to get a mention each time TUI dividends are talked about.

The last time I looked at it was back here (also on HYP - Practical) but the Topic didn't progress:

TUI Dividend

viewtopic.php?t=2731#p35286

That was an attempt to find out what happens in practice in view of the Double Tax Agreement for SIPP holders. If anyone knows the answer, would they be so kind to reply to my post over there, rather than reinvent the wheel here.


(Moorfield - W-8BENs only relate to USA (and I think Canadian) withholding tax, reducing them to 15% on payment, otherwise 30% deducted, but your question relates to payments to pension schemes which is a different kettle of fish)

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Re: TUI - just topped up.

#201616

Postby MaraMan » February 15th, 2019, 5:10 pm

TUI is mentioned in an Investors Chronicle article today called "Turbulence for travel operators".

TUI is given a "hold" rating, as they say it is in better shape than Thomas Cook, which is rated as "sell". The yield on TUI looks pretty attractive.

I have had a holding in Easyjet for about three years now and despite top-slicing continues to grow well and now even enjoys a place in my HYP with its current yield (if HL are to believed) of 4.58%. It's the only travel sector holding I have, but it has been one of my best calls.

MM

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Re: TUI - just topped up.

#201664

Postby moorfield » February 15th, 2019, 10:25 pm

Could anyone post what the GBP dividend net of tax received was today please? I can't find it anywhere, only the EUR amount 72c. Thanks.

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Re: TUI - just topped up.

#201678

Postby monabri » February 15th, 2019, 11:11 pm

The divi isn't due to be paid until 26th Feb.

https://www.dividenddata.co.uk/dividend ... y?epic=TUI


Ballpark figure of 46.6p per share after taxes and exchange rate conversion.

viewtopic.php?f=15&t=16112#p199542

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Re: TUI - just topped up.

#201925

Postby carioca » February 17th, 2019, 2:18 pm

OLTB wrote:
moorfield wrote:Do you know if the dividend tax can be reclaimed in SIPPs using the W-8BEN forms ? And IIRC part of the tax is a German "reunification" surcharge (I wonder how Leave-voting HYPsters feel about that :P) ?


Hi moorfield

I don't think that the tax can be reclaimed (it's already in my HL SIPP) and yes, there is a 5.5% 'solidarity surcharge', comrades, on the 25% withholding tax (26.375% overall) which I believe is an historical tax dating back to German reunification in the early 90's.

Cheers, OLTB.


Maybe I can explain (or further confuse) what's going on there.

I hold a few shares in German companies in an account with a German broker. If the address of the holder indicates that they are not resident in Germany they are automatically put in the 25% income tax bracket. The solidarity tax (5.5% of the income tax) was introduced shortly after the re-unification to pay for additional expenses. One might ask whether they haven't finished re-unifying yet. It's probably one of those temporary contributions that turned permanent.

I don't currently live in the UK so I haven't looked into double tax agreements or other ways of reclaiming the tax paid in Germany. Living permanently in Brazil, I declare all income there. There is a special category for income earned abroad, along with a column for the income tax paid abroad. If the tax I paid is equal to or higher than what I would have to pay in Brazil, then there is no additional tax to pay. At least I don't have to pay tax twice, but I don't know any way of getting my money back.

I wonder if there's a similar regulation in the UK. OTOH it is quite possible that the SIPP rules don't protect you from paying tax abroad.


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