High price of transferring Vodafone shares

Q

I am in the exact same position as your recent correspondent in transferring Vodafone shares into a new name as an executor. I read your reply outlining the low-cost approach via a stock transfer form with annoyance as I have just paid £74 (€84) to Computershare to transfer my late father’s shares worth £315 (€359) into the names of my sister and myself as executors.

I contacted the Revenue’s stamping office and was told you no longer return a stock transfer form to them. You must use the Revenue OnLine Service (ROS).

Computershare never suggested there was an alternative to paying them. Part of its £74 (€84) fee was an extra payment, because one of the forms could not be stamped by a bank as no Irish bank reaches the required credit rating which Computershare asked for.

As they now claim that some of the share certificates which I returned to them were replaced by another certificate – a replacement they did themselves – and despite the fact that there is no sign of it among my fathers papers, and they did not send it by registered post, they want £34 (€39) as an indemnity before they issue a duplicate.

This brings their fees to £108 (€123) plus what they charge to sell them. Computershare, Davys and Bloxham all agree that the certificates must be in the executors’ names before they can be sold.

- Mr DO’C, Dublin

A

Ouch, you really have had a bad time of it. Two very separate matters arise with your position – the charges levied by Computershare and the Revenue position on stock transfer forms.

In general, you are correct that the Revenue has, since July 1st last, moved all stamping – ie, stamp duty – transactions to its very efficient online ROS service.

This is not an issue for most stamping business because it would be carried out by people familiar with filing online returns to the Revenue and so would be registered with the service and have the required access codes and PIN numbers.

However, there clearly remains a rump of people who would very rarely have recourse to direct dealings with the tax authorities.

The Revenue assures me that it is adopting a “common sense” approach to people like you, who, as a result of executing your father’s will, find themselves in the unfamiliar position of dealing with it on a stamping issue.

I understand that, in such circumstances and on a case-by-case basis, the stamping office is still open to dealing with the old paper stock transfer form.

Turning to the other issue, I am at a loss as to how Computershare have managed to charge you £108 to transfer shares worth £315.

They are correct that you will need to have the shares transferred before they can be sold and that replacing missing share certificates will cost something.

They are also correct that the current parlous state of our banks has created problems in indemnifying claims of lost certificates.

However, the scale of the charges is disturbing – as is the fact that they never informed you of the less expensive stock transfer option outlined above .

I must say that in my dealings with Computershare on behalf of readers down the years, I have found them extremely helpful and informative. I note that the figures quoted are sterling and assume you have been dealing with Computershare’s UK operations.

You tell me subsequently that Vodafone have waived an element of their charge but it still sounds disproportionate.

I’d pursue them on their failure to advise you of the alternatives.

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@ irishtimes.com