Refer to the tax considerations Page 84 in the booklet. It clearly states that you do not get the capital loss. I feel a few too many investors missed this hence why this is trading at above 12.75.
This price only makes sense for those that have a low tax rate and are just after a franking refund. You are actually worse off buying this investment... so it would be interesting why some arb funds are on it.
Anti-overlap Where the Permitted Dividend forms part of the capital proceeds, the amount of any capital gain made by a Vita Shareholder will be reduced by the amount of the Permitted Dividend which has been included in the assessable income of the Vita Shareholder. If the amount of the Permitted Dividend exceeds the capital gain, the capital gain is reduced to zero. However, the capital gain made by the Vita Shareholder will not be reduced by the amount of the franking credit that is included in the Vita Shareholder's assessable income as a result of the receipt of the Permitted Dividend by the Vita Shareholder. If a Vita Shareholder makes a capital loss in relation to the disposal of the Vita Shares and the Permitted Dividend forms part of the capital proceeds in relation to that sale, the Vita Shareholder's capital loss is calculated based on capital proceeds which include the Permitted Dividend (meaning that the capital loss is reduced by the amount of the Permitted Dividend).
VTG Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held