• Demergers in brief

    The government has removed tax impediments for businesses that restructure by demerging one or more subsidiaries, where the demerger
    is for commercial reasons.

    For shareholders or unitholders of a group that demerges:

    • CGT and dividend tax relief may now be available for demergers from 1 July 2002, and
    • If you later sell your interests, you will need to adjust the cost base of your interests when working out capital gains or losses.

    Refer to Group demergers: CGT and dividend tax relief (NAT 9016)

    Last modified: 31 Aug 2005QC 18269