• Example

    John received 381 CDIs with a cost base of $657.66 when HHG plc demerged from AMP. His unapplied net capital loss from 2004 is $3,585.27 - all from shares. In May 2005 he received a payment from the Henderson Group plc of $553.07 which comprised:

    • $266.48 as return of cash
    • $286.59 as reduction of investor base

    John also received $435.68 discount gain (grossed up*) from managed funds.

    John would complete worksheets 1 and 5 as follows:

    Worksheet 1

    Cost base of your HHG plc CDIs (as per cost base reports following the demerger from AMP)

    (a)

    $657.66

    Amount received for cancellation of HHG plc CDIs (see the May 2005 advice you received from the Henderson Group plc)

    (b)

    $553.07

    Subtract (b) from (a). This amount at (c) is your capital loss.

    (c)

    $104.59

    * For tax return purposes, the managed fund must 'gross up' the taxable value of the discount gain to ensure it is comparable with other forms of income on your tax return.

    Worksheet 5

    Capital loss from Worksheet 1, Worksheet 2, Worksheet 3 and other assets

    (a)

    $104.59

    Unapplied net capital losses from previous years (for example, from AMP 2003 demerger)

    (b)

    $3,585.27

    Add (a) and (b)

    (c)

    $3,689.86

    Capital gain from Worksheet 2, Worksheet 3 and other assets

    (d)

    $435.68

    If (c) is greater than or equal to (d), subtract (d) from (c). The amount at (e) is your net capital losses available for offset against capital gains in future years.

    If (c) is less than (d) leave (e) blank and refer to question 17 of TaxPack2005 supplement (or question 9 of Retirees TaxPack 2005).

    (e)

    $3,254.18

    John would complete the capital gains question of his tax return as follows:

    At   G - he would print x in the Yes box

    At   A - he would write 0

    At   H - he would write 435

    At   V - he would write 3,254

      Last modified: 06 Oct 2009QC 18161