Metals X Limited (MLX) demerged its gold exploration business from its metals and mining businesses, and issued shareholders with shares in the new entity; Westgold Resources Limited (WGX). Eligible shareholders received 1 WGX share for every 2 MLX shares they own. Instructions below are for MLX investors who have acquired and held MLX shares on or after 20 September 1985 (implementation of CGT). The ATO has issued the tax ruling for this demerger Class Ruling CR 2017/1.
- Select the Portfolio tab, then select the portfolio that contains the MLX demerger.
- Under Securities Held, select MLX Metals X Limited.
- Select the drop down button next to Transactions on the same line, then select New Reconstruction.
- In the reconstruction window, enter the following details:
- Set Date as 12th December 2016. The value for Number of shares participating should be the same as the number of MLX shares owned on this date.
- Under New holdings for which rollover relief does NOT apply, enter the following details:
- Set Code to MLX
- Set Quantity to the same amount as in “number of shares participating”
- The Value per Share ($) will be specific to your situation. e.g. I own 4000 MLX shares. $6800 (cost base) x 0.4337 (relative market value) = $2,949.16. Then $2,949.16 divided by 4000 = $0.73729 per share.
- Select the plus (+) symbol to add another line.
- On the new line, enter the following details:
- Set Code to WGX
- Set Quantity to the same amount as “number of shares participating”
- The Value per Share ($) will be specific to your situation e.g. I own 2000 WGX shares. $6800 (cost base) x 0.5663 (relative market value) = $3,850.84. Then $3,850.84 divided by 2000 = $1.92542 per share.
- Select the Save button.
As always, our team in the office is ready and willing to assist you with any questions you have about any of the content above. Please give us a call on 1300 676 333 or email us at email@example.com with any questions you may have.
However, we are not licensed to provide tax advice and therefore anything which relates to tax or your personal circumstances we will not be able to answer. In order to have personal tax or finance questions answered you will need to seek the services of a licensed practitioner who will be qualified to answer your queries.