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UXC Limited - 2011-12 return of capital

Find out the tax consequences for shareholders who received a return of capital on their UXC shares.

Last updated 8 August 2012

This information applies to you if:

  • you are an individual, not a company or trust
  • you held shares in UXC and received the return of capital in December 2011
  • you acquired your shares under an employee share scheme (ESS) and have been taxed on the discount amount under the ESS provisions
  • 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.
     

Return of capital

All shareholders who held UXC shares at 7pm on 2 December 2011 (record date) were entitled to receive the return of capital.

The payment date of the return of capital was 7 December 2011.

The return of capital was $0.02 per share. The payment was a capital payment. It was not a dividend for any purpose and had no dividend component.

Tax consequences

There are two tax consequences. You need to:

  • work out whether you have made a capital gain by comparing the cost base of your shares with the return of capital you received
  • adjust the cost base (and reduced cost base) of any UXC shares you owned on 7 December 2011.

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