Accounting for the Macquarie SPP and CGT
Macquarie’s Share Purchase Plan is now finalised and most holders have received their full allocation of new shares into their accounts. Macquarie’s CFO, Greg Ward, announced the successful close of the SPP on June 2nd. ” 55,000 applications from eligible shareholders for approximately $A669 million of new Macquarie ordinary shares.
Macquarie Chief Financial Officer Greg Ward said Macquarie will accept all valid applications received under the offer, resulting in the allotment of a maximum of 25.2 million new Macquarie shares”
Macquarie’s SPP offer was as close to a no brainer as you’ll ever get in investing, yet around 60% of retail investors decided to pass and only one third of the eligible shares were taken up. Though as Stephen Mayne points out those stats actually make Macquarie investors among the smartest in Australia. “Less than 10% of Axa Asia Pacific Holdings shareholders took up a $10,000 share purchase plan, which was 40% in the money.”
But what now?
If, like me, you anticipated a scale back you may have ended up with more shares than you want to hold long term. With Mac now at $38.65, trading at $12 (45%) above the SPP, that is a nice problem to have. To re-balance our super fund I sold part of our new allocation today.
Capital Gains Tax can seem confusing when you have different parcels of shares for the same company, but the ATO does try to make it easy. Before you roll around laughing about the ATO making something easy, check this out:
A common question people ask when they dispose of only part of their investment is – ‘How do I identify the particular shares or units I have disposed of’.
If you have the relevant records (for example, share certificates), you may be able to identify which particular shares or units you have disposed of. In other cases, the Commissioner of Taxation will accept your selection of the identity of shares disposed of.
Alternatively, you may wish to use a ‘first in, first out’ basis where you treat the first shares or units you bought as being the first you disposed of. via ATO: Identifying when shares or units were acquired
I bolded the relevant selection. You choose which share to sell. You couldn’t ask for fairer than that.
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