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  • What are the capital gains tax consequences for me?

    A CGT event happened on 16 June 2005, when AMP made a capital return on the shares that you held in the company.

    You received $0.40 for each share that you held on the record date. This amount represents your capital proceeds.

    If you held the shares when the return of capital was received

    For AMP shares you held at the record date, you must:

    • work out whether you have made a capital gain (you cannot make a capital loss on a return of capital)
    • adjust the cost base and reduced cost base of your AMP shares that you held on 16 June 2005.

    Did I make a capital gain?

    You have made a capital gain if your cost base per share on the event date (16 June 2005) was less than the amount you received for each share ($0.40). For each of these shares, you have made a capital gain of:

    $0.40 minus the cost base of the share.

    For shares with a cost base equal to or greater than $0.40, you have made no capital gain as a result of the return of capital.

    For information on how to work out the cost base (and reduced cost base) for shares, see the Guide to capital gains tax 2004-05.

    How do I adjust the cost base and reduced cost base of my AMP shares?

    For the shares you made a capital gain on - reduce their cost base and reduced cost base to nil.

    For your other shares - reduce the cost base and reduced cost base by $0.40 each. If any of your shares had a cost base of exactly $0.40, their new cost base and reduced cost base will be nil.

    For more information on how to work out the cost base and the reduced cost base of shares, see the Guide to capital gains tax 2004-05.

    If you no longer held the shares when the return of capital was received

    If you disposed of the shares after the record date and before the return of capital was received, the return of capital is a CGT event separate from the CGT event on disposal. The cost base for the return of capital is nil. Therefore, you have made a capital gain from this event of $0.40 per share disposed.

    If you acquired the shares disposed of before 16 June 2004, you apply the discount method to work out the capital gain.

      Last modified: 06 Oct 2009QC 18163