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Corporate actions – scrip for scrip rollover

A scrip for scrip roll-over is typically an exchange of shares in one entity for shares in another, generally as a result of a company takeover, buyout or restructure.

Scrip for Scrip roll-over 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. It is vital to enter this corporate action correctly to ensure Mclowd™ calculates the tax implications correctly.

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 roll-over, click CORPORATE ACTIONS on the ASSETS menu, then SCRIP FOR SCRIP ROLL-OVER.

Select the Asset from the assets list.

Mclowd displays the Assets Shares Data (purchase date, CGT date, volume and price per unit.)

The below screen is for example purposes only. It is not intended to suggest that any takeover of Telstra occurred on that date.

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)

The software will calculate and display the:

  • Total Market Value (of new shares issued) and the Total Amount Received
  • Cash Portion of Acquisition Cost, Revised Acquisition Cost and Capital Gain or Loss