Scrip for Scrip rollover tax relief may be available when a takeover of a company you hold shares in results in you being issued with new shares in the takeover company, or if an interest in a fixed trust is exchanged for a similar interest in another fixed trust.
NOTE: Verify eligibility for tax relief by checking the ATO rules or consulting your accountant. Some conditions apply.
To record a share issue via Scrip for Scrip rollover, click CORPORATE ACTIONS on the ASSETS menu, then SCRIP FOR SCRIP ROLLOVER.
Enter the Record Date by selecting from the popup calendar.
Select the Asset from the assets list.
Mclowd displays the Assets Shares Data (purchase date, CGT date, volume and price per unit.)
NOTE: The below screen is for example purposes only. It is not intended to suggest that any takeover of Telstra occurred on that date.
Select the Scrip Rollover type: Complete Roll Over (all existing shares cancelled and replaced) or Partial (only a portion of shares cancelled and replaced).
Enter the Posting Date by selecting from the popup calendar.
Select the New Security Category (Domestic or Foreign).
Enter the New Security Code for the new Securities issued. When you begin to type, a list of names will appear in the New Security Name field. Select the appropriate security.
Enter the number of Rollover Units Received.
If you selected Partial Roll Over, Mclowd will present additional fields. In a Partial Roll Over, you will typically receive both shares in the takeover company and a cash payment. You will need to enter:
- the Per Unit Market Value (share price of new shares received), and
- Per Unit Amount received (price paid per share for those shares not replaced with shares in the takeover company)
Mclowd will calculate and display the Total Market Value (of new shares issued) and the Total Amount Received.
Select the Bank Account into which the cash received for shares was deposited.
Mclowd will calculate and display the Cash Portion of Acquisition Cost, Revised Acquisition Cost and Capital Gain or Loss.
When you are satisfied that the data entered is correct, click SAVE.