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AMP shares

Discussion in 'Shares' started by Bluegum, 7th Nov, 2007.

  1. Bluegum

    Bluegum Member

    Joined:
    19th Jun, 2006
    Posts:
    7
    Location:
    Albany
    When AMP demergered i received 500 shares. If i sold them now will i have to pay CGT on the total value or is there a cost base to factor in?.
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi BlueGum,

    There is a cost base in AMP shares.
    Speak to ComputerShare on 02 8234 5000 and ask for the AMP share register.

    Cheers,

    Dan
     
  3. Rod_WA

    Rod_WA Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    324
    Location:
    Inglewood, WA
    As I remember it, AMP shares from the demutualisation were deemed to have been acquired at $10.43 in November 1997.
    Since then there have been capital returns ($0.40 in each year 2005-2007) - these capital returns will reduce the cost base by $1.20, to $9.23.

    Since the shares are trading just above $10, you are in the sweet spot of only having to pay CGT on about 10% of the value, and you'll get a CGT 50% discount (I haven't done the indexing calculations, but I expect the 50% discount will yield the best outcome).

    Please don't accept what I have outlined here as true! There may have been other capital gains events in the last 10 years. But you can probably get info on the demutualisation from the ATO website.