ato logo
Search Suggestion:

Demerger rollover relief

Demerger rollover relief is available for this demerger if you made a capital gain.

Last updated 12 August 2012

Choosing the rollover

The rollover allows you to disregard any capital gain resulting from the NZ$0.1989 (A$0.1469) capital reduction amount.

A capital gain would only arise if the cost base of each of your TCNZ shares was less than NZ$0.1989 (A$0.1469).

You cannot make a capital loss on the capital reduction.

Not choosing the rollover

If you do not choose the rollover and you made a capital gain on the share capital reduction, you must take the capital gain into account in calculating your net capital gain or capital loss in your 2011-12 tax return.

Attention

The way you prepare your tax return is sufficient evidence of the choice you made.

End of attention

QC26368