Sumawrestler,The conversion of SRNOC options to shares is not a...

Sumawrestler,

The conversion of SRNOC options to shares is not a CGT event (I.e. CGT tax payable at that time) ... it is simple a change / conversion to SRN shares.

The CGT cost base of the SRN shares inherits the cost of purchasing the SRNOC options and the excercise price (namely $0.006). In other words SRN cost base is purchase price of SRNOC options and the $0.006 excercise price.

Problem is that if you sold SRNOC options now, you would get the 50% CGT concession / reduction (as you have held these for more than 6 months).

By converting the SRNOC options to SRN shares the purchase date is rest to the excercise date, and you will lose the 50% CGT Concession and have to hold SRN shares for 12 months after that date to be entitled to the 50% CGT concession again.

Please note: If you have CGT losses carried forward in your Income Tax Return that exceed the subsequent Capital Gains and SRNOC Capital Gains, the above loss of 50% CGT Concession is not relevant, as Amy Capital Gains are applied to utilise Capital Losses before and 50% CGT Concession is applied. 50% CGT Concession is only applied after all carried forward Capital Losses to date have been utilised.

GLTAH,

Zippy1