Aviva preference shares: Advisers flag 'inappropriate' cancellation tax hit to unwary retail investors

Move may not be 'clear, fair and not misleading'

Financial advisers have criticised Aviva's irredeemable preference shares cancellation bid amid concerns around tax implications and fairness to retail investors.

Aviva and subsidiary General Accident this month (11 March) unveiled a tender offer and cancellation vote for four types of irredeemable preference shares originally valued at a combined £450m, issued at £1 each in 1992 and 1993. Advisers and retail investors warned on Aviva £450m preference share cancellation impact Institutional investors have already signalled intent to cancel. However, advisers have raised concerns that retail investors could be getting the short end of the stick and unwittingly be losing guaranteed sources of income via fixed coupons should th...