Hello,
I have held shares in a company that consolidated its shares in FY16/7 and again in FY20/21. The second time, my total number of shares was consolidated down to 0. Does this count as a CGT event that I can claim as a CG loss in FY20/21?
Thanks.
Hi @12luke1197
Determining the exact tax consequences of a companys restructure of capital and share consolidation will depend on the specific facts and circumstances .
When a corporate group restructures, we often publish a class ruling or fact sheet detailing the tax consequences. Please refer to CGT events affecting shares and units and Events affecting shareholders for further information. Generally, as per TD 2000/10, if a company converts its shares into a larger or smaller number of shares in accordance with section 254H of the Corporations Law such that:
no CGT event happens to the shareholder's original shares for capital gains purposes.
While there is a change in the form of the original shares, there is no change in their beneficial ownership. The converted shares have the same date of acquisition as the original shares to which they relate. For example, if the original shares were acquired before 20 September 1985 (pre-CGT shares), the converted shares have the same acquisition date. In the case of original shares acquired on or after 20 September 1985 (post-CGT shares), section 112-25 of the 1997 Act applies to attribute a proportionate cost base to the converted shares.
Hi,
We will look into this one for you.
Hi @12luke1197
Determining the exact tax consequences of a companys restructure of capital and share consolidation will depend on the specific facts and circumstances .
When a corporate group restructures, we often publish a class ruling or fact sheet detailing the tax consequences. Please refer to CGT events affecting shares and units and Events affecting shareholders for further information. Generally, as per TD 2000/10, if a company converts its shares into a larger or smaller number of shares in accordance with section 254H of the Corporations Law such that:
no CGT event happens to the shareholder's original shares for capital gains purposes.
While there is a change in the form of the original shares, there is no change in their beneficial ownership. The converted shares have the same date of acquisition as the original shares to which they relate. For example, if the original shares were acquired before 20 September 1985 (pre-CGT shares), the converted shares have the same acquisition date. In the case of original shares acquired on or after 20 September 1985 (post-CGT shares), section 112-25 of the 1997 Act applies to attribute a proportionate cost base to the converted shares.
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