How assets between £7.5bn and £10bn can get away with selling over £16 billion at a time

If you were to watch BBC News last night (31 August 2018), then you’d have heard that people with assets of between £7.5 billion and £10 billion can get away with selling over £16 billion of stocks at once due to the exemption of the £30m, which is to say, any person with assets between £7.5bn and £10bn, even in the UK, can sell up to £16bn of stocks at a time.

1) Assets worth more than £7.5bn but less than £10bn can sell off more than £16 billion

Think of an asset in England or Wales valued at more than £7.5bn but less than £10bn, sellable in parts for between 10p and 15p per share; any fund manager can raise up to £16 billion from pension funds to buy shares in your business, tax-free if they hold on to them for three years – no questions asked by HMRC.

2) What’s going on here?

The UK has a lot of wealth to go around. According to WealthInsight, there are 4,875 ultra-high net worth individuals in Britain who have more than $30 million each in liquid assets.

3) Does this really matter?

Considering more than 40% of UK stock is owned by about 5,000 people – you would be forgiven for thinking that what these big investors do doesn’t really matter to us little guys – we couldn’t be more wrong. When it comes to our stock market – large sellers drive down share prices.

4) Is there any other way?

There’s an old investing truism that says if you don’t understand how to analyze stocks, stick to bonds. That same wisdom applies to bitcoin: If you don’t know anything about cryptocurrency, stay away from it—at least until you learn more about it (see tip #3). There are plenty of great books out there on stock market investing, so read up before diving in yourself.

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