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Ann: Uniti enters into binding Scheme Implementation Deed, page-19

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smartbomb

266 Posts.

22

14/04/22

11:58

Post #: 60853636
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Originally posted by mkench17: ↑

Even if you're on the highest tax rate 45% the franking credits mean the assessable income tax rate reduced by 30% meaning you only pay 15% on the div as tax.

Now let's say this would be capital distribution instead and assume you've held it for over a year and also on the 45% tax rate. Your tax on it would be for half because of the 50% discount rule. Meaning the distribution tax rate is 22.5%.

15% is better then 22.5% and this only gets better the lower your personal tax rate is.

As such it is always better to receive a dividend if it is fully franked then capital returns.

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Absolutely right of course. But for me one real advantage is that it all happens post 30 June as I will have quite sufficient cgt liability this FY. Unless of course some really great opportunity presents itself and I just have to liberate the funds….!

UWL Price at posting: $4.96 Sentiment: Hold Disclosure: Held
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