With the almost forgone conclusion that A&L will become a Spanish Bank next week there was a very interesting item on the BBC Radio4 Money Box programme last night regarding the tax situation for UK shareholders.

Basically, if you are a shareholder of A&L and don't sell you shares now then you will get a number of shares in Banco Santander. With Banco Santander being a SPANISH company not quoted on a UK stock market then if you accept the shares you become liable for the Spanish equivalents of income tax, capital gains tax AND property tax in Spain. The dividends will also be paid in Euros and liable for all the Spanish taxes as the Spaniards apparrently don't have reciprocal arrangements for tax payments between the UK and Spain. Spain levies very high fines for nonpayemnt or late payment of tax too and the shareholder has to make his own delcaration to the Spanish authorities as they will not send you an annual statement of tax accounts........................... advise to UK small shareholders was to sell A&L shres now as the cost of making the Spanish tax declaration is like to be more than any dividend you are likely to receive after paying the tax! I find this very odd because I have my salary paid in pounds by a Bermudan company operating out of a small town in southern Germany and because the UK and Germany have a reciprocal tax agreement I pay UK taxes and NI and thankfully not their German equivalents which with my salary would be a lot higher. So why can't Spain do the same thing?

Maybe some of our expat Spanish members can confirm or correct what was broadcast? A Carbon Footprint is the mark a lump of coal makes when it's dropped on the ground.

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My mortgage is with A&L....will this affect me?

You normally get a whole load of letters pre-takeover if you have any kind of interest... surprised you've heard nowt, Jonny?  

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Nope...heard nothing

Hmm... time for a phone call then  

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I doubt it will affect Mortgage customers as the company is still UK based but Spanish owned, it'll only affect people who are shareholders as the takeover involves issuing of new shares in a Spanish listed company. WINNER - 2008 Outstanding Contribution
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We've got mortgages with A&L and haven't heard anything either, spoke to a few colleagues as well and they haven't heard anything either. Think mortgages wouldn't be effected anyway and will continue as normal if taken out previously, with new product offerings they will obviously change somewhat. Past: Bmw M3 Coupe 57, 335d Coupe 56, Audi RS4 06, RR Sport TD HSE 05,
Current: Bmw 730d Sport, Merc S320 CDI L, Merc Viano L 2.2CDI, Merc E200K

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No it only affects SHAREHOLDERS - it won't affect your mortgage, but thanks for taking it out with A&L, every little helps toward my pension!
Don't forget A&L isn't a building society, it demutualised about 10 years ago and became a bank so having your mortgage with them doesn't make you a shareholder these days. Nationwide is still a Building Society though A Carbon Footprint is the mark a lump of coal makes when it's dropped on the ground.

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