Aviva preference shares: Advisers flag 'inappropriate' cancellation tax hit to unwary 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. 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 the cancellation go through. They further fear that retail investors could get slapped with an unexpected income t...