N&P cuts cost of smaller deals

Caroline Merrell
Friday 11 February 1994 19:02 EST
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NATIONAL & Provincial Building Society is launching a telephone share dealing service next week which is particularly cheap on small deals.

There is a flat dealing fee of pounds 10 on all transactions below pounds 1,000. For each pounds 1,000 worth of shares traded above the pounds 1,000 minimum, the cost will be pounds 2.

The dealing service will be launched on Monday, and will carry a joining fee of pounds 10 until 1 April, when it rises to pounds 15. The fee is not payable until the first transaction is made.

Most telephone dealing services have a minimum charge, which can reach pounds 28. The other services also tend to have a percentage commission rate based on the value of shares traded.

Under National & Provincial's share dealing service the cost of dealing in pounds 2,500 worth of shares would be pounds 14 plus the pounds 10 registration fee.

Lloyds, Barclays, NatWest, and Sharelink would all charge pounds 37.50 for the same transaction. Mike Healy, National & Provincial's investment manager, said: 'We are making it easier for people to buy and sell shares.'

A lot of people will be considering 'bed and breakfasting' their shares this way to mitigate capital gains tax.

Midland Stockbrokers, a subsidiary of Midland Bank, is offering 'bed and breakfast' share dealing to customers aiming to cut their capital gains tax liabilities. Commission is 1.5 per cent of sales, with a minimum of pounds 20 and a maximum of pounds 75.

The offer, available until 5 April, includes free repurchases, but 0.5 per cent stamp duty is payable. More details from any branch of Midland Bank.

Lloyds is offering a low cost dealing service on London Electricity, Norweb and Southern Electrity shares.

N&P 0800 808080

Lloyds Bank 0903 702321

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