AMP Demerger Calculator

In December 2003, when AMP demerged its UK operations (HHG Plc), there were about 800,000 Australian residents holding AMP shares. 

The restructuring had a CGT consequence that most of those shareholders will need to report in their 2004 tax return.

The Australian Taxation Office has designed an on-line calculator (the AMP demerger calculator) to make it easier for AMP shareholders to calculate their CGT position.

The calculator will help taxpayers and their adviser to work out:

• the capital gain or loss on the cancellation of their AMP Shares;
• the capital gain if they did not take up shares in the AMP Rights offer;
• the capital gain or loss if they sold their HHG Shares under the HHG Share Sale Facility; and
• the new CGT cost bases of their AMP and HHG Shares (including any AMP shares received under the AMP rights offer).

The calculator takes from 5 to 20 minutes to complete.

If you use the calculator with the relevant share numbers, dates and costs of acquisition, the resultant reports will significantly reduce the effort necessary to arrive at the correct figures "by hand".

Unfortunately, this highlights yet again the complexity of our tax laws. 

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