Australian shares and CGT

[tims]

I lived in Aussie for several years before coming back here permanently a few years ago. While there I bought a few Aussie shares but didn't sell any. Now I've received an offer from a existing major shareholder of Leighton Holdings Ltd that want to buy 37.5% of my shares.

My question relates to Australian CGT that I might be liable for. In the bidding document it states that shareholders currently living in Australia are liable for CGT if they sell the shares but it says that non Australian residents (i.e. me) who bought the shares while living in Australia may still be liable for CGT and should seek professional advise.
Anyone here know if I should be paying CGT to the Australian tax dept if I sell the shares or what the rules are concerning selling Aussie shares by a (now) non-resident?

Thanks for any replies.

Tim

[Snow Leopard]

I lived in Aussie for several years before coming back here permanently a few years ago. While there I bought a few Aussie shares but didn't sell any. Now I've received an offer from a existing major shareholder of Leighton Holdings Ltd that want to buy 37.5% of my shares.

My question relates to Australian CGT that I might be liable for. In the bidding document it states that shareholders currently living in Australia are liable for CGT if they sell the shares but it says that non Australian residents (i.e. me) who bought the shares while living in Australia may still be liable for CGT and should seek professional advise.
Anyone here know if I should be paying CGT to the Australian tax dept if I sell the shares or what the rules are concerning selling Aussie shares by a (now) non-resident?

Thanks for any replies.

Tim

This might help, or it might not.

Best Wishes
Paper Tiger

[tims]

This might help, or it might not.

Best Wishes
Paper Tiger

Thanks for your reply. I've had a look at the ATO website you linked to for what I think applies to me (see below) but after several readings of this legalese I think it means that I am liable for Aussie CGT as we arrived back in February, 2006, but if anyone wants to read it and thinks I'm wrong, please let me know!



"Choosing to disregard capital gains and capital losses when you cease being an Australian resident

If you are an individual, you may choose to disregard all capital gains and capital losses you made when you stopped being a resident.
If you ceased being a resident before 12 December 2006 and you make this choice, those assets are taken to have the necessary connection with Australia until the earlier of:

• a CGT event happening to the assets (for example, their sale or disposal), or
• you again becoming an Australian resident.
  
• .................................................. ...................
  

.................................................. ....................

The effect of making this choice is that when working out your capital gains and capital losses on those assets, we take into account the increase or decrease in the value of the assets from the time you cease being a resident to the time:

• of the next CGT event, or
• you again become a resident."

[Jay]

Would have to agree with KW, you are not a resident, have not been since early 2006 - 8 years ago, can't see how would it apply you.
The major shareholder is probably just covering their bases.

[nicknz125]

Hello there,

I have a further query on this subject

As a New Zealander that has been living in Australia (West Island) for 2.5 years with both stock investments on the NZX and ASX do I have to pay capital gains tax on sold stocks in ASX and NZX, or do i pay CGT on Australia stocks and consider NZX investments separately?

Cheers

[777]

Hello there,

I have a further query on this subject

As a New Zealander that has been living in Australia (West Island) for 2.5 years with both stock investments on the NZX and ASX do I have to pay capital gains tax on sold stocks in ASX and NZX, or do i pay CGT on Australia stocks and consider NZX investments separately?

Cheers

I would guess that as an Australian resident you have to pay CGT on all your investments. The ATO website should give you that information.

[nicknz125]

I would guess that as an Australian resident you have to pay CGT on all your investments. The ATO website should give you that information.

Yea as Australian Resident for tax purposes CGT is paid on all Australian Investments, just not sure how it works with NZX investments.

[777]

Yea as Australian Resident for tax purposes CGT is paid on all Australian Investments, just not sure how it works with NZX investments.

Who would invest in Australia then if you could invest offshore and not be liable to CGT?

As I said The ATO site will give you the information.