What are the capital gains tax consequences?
A capital gains tax (CGT) event happens on the day that you accept the offer to purchase your shares. You will make a capital gain if the capital proceeds are more than the cost base of the shares. You will make a capital loss if the reduced cost base of the shares is more than the capital proceeds. If you acquired the shares before 20 September 1985, you disregard the capital gain or capital loss. The capital proceeds are the total amount you receive and are entitled to receive. This means all the instalments payable to you under the arrangement are included in working out your capital gain or capital loss. You cannot delay declaring the capital gain (or capital loss) until you actually receive payment. Note: You can recalculate the capital gain or capital loss on the shares if all the instalments owed to you are not received (but not because of something you did or omitted to do). This may happen if the person or entity that acquired them from you becomes bankrupt or insolvent. You r
