PTFEAn elegant thought but (at best) it would reduce the CGT...

PTFE

An elegant thought but (at best) it would reduce the CGT payable on any cash component of the offer rather than roll it over to a future date.

I've been in HDR since around 2000 so this is a particularly sensitive issue for me. I also haven't been involved in a takeover like this before so I'm a bit inexperienced. I do believe however that in NSW if property is compulsorily acquired and if the capital generated is invested in a similar class of asset within a certain period (I think 18 months) then the CGT liability is not triggered and can be rolled into the new asset.

I see our position with the cash component of the TLW offer to be in a parallel position. As shareholders we did not seek the takeover, and indeed as individuals we may vote against it, however circumstances outside our control may trigger a CGT liability that would not otherwise have existed. It seems only reasonable then that some CGT rollover relief should be available.

I intend to call the ATO for an opinion and will share any info here. I don't have high hopes though as I haven't been able to get authoratitive and clear advice from them by 'phone in the past.

I have also put the issue to my accountant but he referred me to the explanatory document stating that circumstances vary between takeovers and the documentation should address the issue......(yawn)

I expect that a number of posters may be facing this issue - whether they currently realise it or not. So maybe relevant wisdom exists out there somewhere or maybe if people in similar circumstances unite there could be a beneficial strength.

Solly