If you owned Woolworths shares on 30 November 2012 but sold them before 11 December 2012, you must include the following amounts in your 2012–13 tax return:
- any capital gain or capital loss from the sale of your Woolworths shares
- a capital gain from receiving the stapled securities, and
- the dividend amount and franking credit attached to it.
Work out your capital gain or capital loss on the sale of your Woolworths shares by comparing the cost base of your shares and the sale proceeds. Do not reduce the cost base by the amount of the distribution.
If you make a capital gain, apply any remaining net capital losses that you have against that capital gain. If you had owned your Woolworths shares for more than 12 months as at the date you sold your Woolworths shares you can reduce the remaining capital gain (if any) by the 50% CGT discount.
Receiving the stapled securities
Owning Woolworths shares on 30 November 2012 gave you a right to receive SCA Property Group stapled securities. When you sold your Woolworths shares, this right remained as a separate capital gains tax asset.
The cost base of the right is nil.
When the distribution was made it ended the right. This is another capital gains tax event for you.
The capital proceeds is your total distribution amount, which is the number of SCA Property Group stapled securities you received multiplied by $1.4397.
Because the cost base of the right to receive the stapled securities is nil, the capital proceeds (your total distribution amount) is your capital gain.
Your capital gain is then reduced by the dividend amount of the total distribution (refer to your Woolworths Limited in-specie distribution advice for these amounts).
This is because the dividend amount, and the franking credit attached to it, must be included at the Dividend label of your tax return.
You are entitled to a franking tax offset equal to the franking credit amount.
You will not be taxed twice on the dividend amount. Deducting the dividend amount from the capital gain prevents this.
End of attention
After subtracting the dividend amount from the capital gain, apply any remaining net capital losses that you have against that capital gain. If you had owned your Woolworths shares for more than 12 months prior to the receipt of the distribution, you can now reduce the capital gain by the 50% CGT discount.
Refer to Example 2 if you sold your Woolworths shares before 11 December 2012.
SCA Property Group conducted a sale facility giving security holders who held 318 or less stapled securities (with a market value of less than $500) on 24 January 2013, the opportunity to sell their stapled securities brokerage-free.
If you held 318 or less stapled securities on 24 January 2013 you were sent a letter about the sale facility, the Terms and Conditions booklet and a Unit Retention Form.
If you wanted to keep your stapled securities you had to return the Unit Retention Form by 5pm (Sydney time) on 21 March 2013.
You could also have acquired more stapled securities before market close on 18 March 2013 so that you held 319 stapled securities or more on 21 March 2013.
If you wanted your stapled securities sold in the sale facility, you did not need to do anything.
The stapled securities were sold for $1.6347 each and the sale proceeds sent to you.
A capital gains tax event happened when your stapled securities were sold. You made a capital gain if the sale proceeds were more than the cost base of the stapled securities.
Because each stapled security is made up of one unit in SCA Property Management Trust and one unit in SCA Property Retail Trust, the sale proceeds are apportioned 99.4% to the SCA Property Retail Trust unit and 0.6% to the SCA Property Management Trust unit, giving separate sale proceeds of:
- $1.6248918 for each SCA Property Retail Trust unit, and
- $0.0098082 for each SCA Property Management Trust unit.
The cost base of the units is apportioned the same way. See Cost base of new units.
Refer to Step 3 in Example 1 if your stapled securities were sold in the sale facility.