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Baring Emerging Europe Trust

Closed-end funds and OEICs
scotia
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Baring Emerging Europe Trust

#135909

Postby scotia » May 1st, 2018, 12:00 am

I was looking through my yearly report from Charles Stanley Direct, and I noticed the following item dated 26th February 2018, namely "Baring Emerging Europe Trust Final Liquidation Payment". I confess that I can't remember anything about this liquidation. On searching the net, it looks like it possibly took place in 2002/2003, and I'm afraid my paper records don't stretch back that far - and Charles Stanley Direct (formerly Fastrade) only seem to keep 2 years of transactions online. Is there anyone out there with a better memory, and/or a better set of records, that can jolt my memory?
The sum was small - less than £20, so the consequences are insignificant. But I wonder where in a tax return such a sum should go. I would guess that its a return of capital, so theoretically it could affect a Capital Gains Tax return - but for which year?
And my second puzzlement is why it apparently took 16 years to finalise.

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Re: Baring Emerging Europe Trust

#135910

Postby PinkDalek » May 1st, 2018, 12:36 am

scotia wrote:I was looking through my yearly report from Charles Stanley Direct, and I noticed the following item dated 26th February 2018, namely "Baring Emerging Europe Trust Final Liquidation Payment". I confess that I can't remember anything about this liquidation. On searching the net, it looks like it possibly took place in 2002/2003, and I'm afraid my paper records don't stretch back that far - and Charles Stanley Direct (formerly Fastrade) only seem to keep 2 years of transactions online. Is there anyone out there with a better memory, and/or a better set of records, that can jolt my memory? ... And my second puzzlement is why it apparently took 16 years to finalise.


This one, which includes the many Liquidators' statement of receipts and payments?:

THE BARING EMERGING EUROPE TRUST PLC
https://beta.companieshouse.gov.uk/comp ... ng-history

The link above doesn't suggest the liquidation is complete but I haven't studied the filings in detail.

Yes the £x may well feature in your 2017/18 Tax Return, depending on your other circumstances, but your tax question may be better suited on the Taxes board viewforum.php?f=49 and it might depend on what distributions, if any, were made in the past and how you treated them. Presumably you have a capital loss to claim ...

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Re: Baring Emerging Europe Trust

#136011

Postby scotia » May 1st, 2018, 1:14 pm

Many thanks Pinkdalek
I'm in the fortunate position that any monetary gain or loss will have no effect on my capital gains non-reports. I always burned off gains annually below the tax threshold.
But I'm astonished that it takes >15 years to wind up an investment trust, with managers and accountants presumably charging fees over that period. And I wonder what would have happened if I had closed my account with Charles Stanley (Fastrade) in the meantime. Are they required to keep such records alive?

StOmer

Re: Baring Emerging Europe Trust

#136179

Postby StOmer » May 2nd, 2018, 8:56 am

When Govett Oriental collapsed we received a couple of cheques many years later from the Bank of New York. I think these things take some time to wind down. They later wrote asking for one of the cheques back, a cautionary tale perhaps.

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Re: Baring Emerging Europe Trust

#136222

Postby scotia » May 2nd, 2018, 10:45 am

They later wrote asking for one of the cheques back, a cautionary tale perhaps.

I think I had better spend the £17 fast!
On a more serious note, if I remember correctly, this was an Investment Trust running at a substantial discount that was pressurised by a large investor to go into liquidation in order to return full value. I think there was a choice of receiving cash, or re-investing in a new incarnation. I think BEET liquidated, and BEE rose from the ashes. I chose the cash, as I had previously in another Baring (Russian) IT liquidation. In both cases the majority of the cash was received promptly, and in the Russian IT, final minor payments were received within a few years. 15 years seems incredible - and is way beyond the time which I hold onto transaction details.

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Re: Baring Emerging Europe Trust

#136254

Postby PinkDalek » May 2nd, 2018, 11:30 am

scotia wrote:... 15 years seems incredible - and is way beyond the time which I hold onto transaction details.


I'm guessing that may have been the final liquidation proceeds but haven't checked in detail.

If one were to look at the latest filed Liquidators' statement of receipts and payments to 16 December 2017, it includes "Liquidation to proceed to closure". The one before refers to litigation with HMRC re investment trusts not being able to recover VAT on investment management fees and refers to a Supreme Court ruling in April 2017. Jumping back to 2015 they mention Contingent VAT being the reason they can't conclude. Similar wording in 2005 but I haven't gone further back.

All of the statements will probably show what was causing the delay.

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Re: Baring Emerging Europe Trust

#136833

Postby scotia » May 4th, 2018, 12:32 pm

I'm guessing that may have been the final liquidation proceeds

Yes - it is reported in the Charles Stanley Statement as the BAR EM EUR FIN LIQ - so I assume its the final liquidation payment
I wondered if the delay was associated with any recent changes in the HMRC treatment of IT management charges, so I had a look at HMRC VAT Notice 701/45:finance , updated 7/6/2017. This states that it is an update from January 2013 - but only in the treatment of prompt payment discounts, so the treatment of IT management charges must at least go back to 2013. Para 7.4 appears to make it clear that no VAT is payable on the management fees of Closed End Collective Investments (i.e. conventional ITs).
So I am at a loss in determining why it took to 2018 to finalise the payment.
Anyway - it is of no significant importance, apart from reminding me to hold onto transaction details of a liquidated trust for a very long time!


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