• CGT and dividend tax relief

    From 1 July 2002, tax relief may be available where a business restructures by demerging one or more subsidiaries, provided the demerger is undertaken for commercial reasons.

    For shareholders or unit-holders of a group that demerges:

    • CGT and dividend tax relief may be available for the demerger,
    • they will need to adjust the cost base of their remaining interests and new interests.

    For members of the demerger group:

    • certain capital gains and capital losses are ignored
    • reduced cost base and capital loss adjustments may be required.
      Last modified: 03 Feb 2016QC 17023