Standard Life Windfall Questions Answered

June 7th, 2006 | POSTED BY ROB

The Independent has done a round-up of answers to questions you may have about the Standard Life windfall, following the 98% positive vote for the demutualisation last week.

The questions answered are:

Do I Qualify For The Windfalls? If you had a with-profits policy with Standard Life on 30 March 2004 that you still hold now, you will be eligible for free shares.
How Much Will I Get? Standard says that about half its members will receive shares worth between £490 and £1,000. You may get more, you may get less.
When Will I Get My Windfall? Standard says that shares will be issued to members “as soon as practical” after flotation, which is currently scheduled for July.
Should I Sell My Shares? A tricky one - depends whether you think the prospects for companies like Standard Life are good or not.
Will I Have To Pay Tax on my Shares? Not on receiving them, but you may have to pay capital gains tax when you sell.
Can I Buy More Shares? If you think the prospects for Standard Life are good, then members, customers and employees will be entitled to buy additional shares at a discount to the listing price - expected to be between 5 and 10 per cent.
What Should I Do With My Standard Life Policies? Another tricky answer - best to check the exit penalties first and then decide whether it’s worth it.

For more detailed answers to all of these important questions, read the article.