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ASX shares Capital Raising and Date of Acquisition for CGT

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Newbie

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Dear ATO Community,

 

I have purchased some shares in an ASX listed company (e.g. ABC.AX) through its capital raising process and have couple of questions regarding date of acquisition of these shares for CGT calculation pourposes.

 

Question #1)

For the shares purchased in ABC through this capital raise process, what would be the date of acquisition for CGT calculation?

 

Date capital raising announced, term sheet received and shares applied for: 18 March

Date offer letter and share placement application form signed and sent: 19 March

Date payment made to the company and payment received by the company: 21 March

Date shares alloted to my broker account under scheme, and appendix 3G filed in ASX by the company: 27 March

 

Question #2)

Along with the shares purchased in ABC through this capital raise process, I have received 1:1 free options as well - these options are quoted in ASX (e.g. ABCOC.AX) by the company similar to tradeable rights and I can either sell them on ASX or they entitle me to convert 1 option to 1 share in the company by 2022 at a specific exercise price.  What would be the date of acquisition of these options for CGT calculation?

 

Date of acquisition of relevant shares: as per question #1

Date of approval of new options in company's general meeting: 31 May

Date of listing of the new options in ASX: 6 Jun

Date options alloted to my broker account under scheme: 6 Jun

 

I have checked this forum and available web resources in the ATO website but unfortunately unable to find out the answers I am looking for. The closest question in this forum was https://community.ato.gov.au/t5/Personal-tax-questions/Share-Purchase-Plan-SPP-Date-of-Acquisition/m..., but it has slightly different context.

 

Thank you in advance.

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ATO Certified

Community Support

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Hi @asxholder

 

Thank you for questions!

 

I refer to another post: Acquisition date for CGT purposes of shares or units which asked similar questions.

 

In answer to your first question based on the information you provided the acquisition date would be 21 March (the date payment made to the company and payment received by the company). Supporting information in link Timing of acquisition.

 

In regards to your second question, the acquisition date would be the: (date of acquisition of relevant shares: as per question #1). This is covered in the Personal Investors Guide, Chapter B3, page 20, Rights or options issued directly to you from a company or trust for no cost.

 

Hope this information answers your questions!

 

Warm regards

DebC

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Best answer

ATO Certified

Community Support

Replies 1

Hi @asxholder

 

Thank you for questions!

 

I refer to another post: Acquisition date for CGT purposes of shares or units which asked similar questions.

 

In answer to your first question based on the information you provided the acquisition date would be 21 March (the date payment made to the company and payment received by the company). Supporting information in link Timing of acquisition.

 

In regards to your second question, the acquisition date would be the: (date of acquisition of relevant shares: as per question #1). This is covered in the Personal Investors Guide, Chapter B3, page 20, Rights or options issued directly to you from a company or trust for no cost.

 

Hope this information answers your questions!

 

Warm regards

DebC

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Newbie

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Dear DebC,

 

Thank you so much for taking time to respond to my questions, with detailed information and links. Very clear now and your help is much appreciated.

 

Best Regards!