- you are an individual, not a company or trust
- you are an Australian resident for tax purposes
- you held shares in nib and received the return of capital in July 2011
- you did not acquire your shares under an employee share scheme, and
- any gain or loss you made on the shares is a capital gain or capital loss - this means that you held your shares as an investment asset, not
- as trading stock
- as part of carrying on a business, or
- to make a short-term or 'one-off' commercial gain.
All shareholders who held nib shares on 13 July 2011 (record date) were entitled to receive the capital return.
The capital return was completed on 21 July 2011.
The capital return was $0.1607 per share. This payment was a capital payment. It was not a dividend for any purpose and had no dividend component.
There are two tax consequences. You need to:
- work out whether you have made a capital gain (you cannot make a capital loss on a capital return)
- adjust the cost base (and reduced cost base) of any nib shares you owned on 21 July 2011.