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Date Posted: Monday, June 03, 04:51:15pm
Author: Chankhana
Subject: Re: Tax implications: NRMA share buy-back offer
In reply to: Karen 's message, "Tax implications: NRMA share buy-back offer" on Friday, May 31, 11:28:37am

Dear Karen,

I don't know exactly the details of what is in your NRMA share buy-back documents but I can tell you some general information about the share buy-back.

Generally, if you decide to participate in the buy-back scheme there will not be any capital gains tax implications on the sale of your shares. The profits you make from the sale will be treated as fully franked dividends. However if you decide to sell the shares at a later date, there will be capital gains tax implcations on the profits made from the sale. The rate of tax you have to pay for the profits will be the marginal rate of tax you pay according to your level of income.

The above is just general information on NRMA share buy-back schemes. The details that you have may be different so I suggest that you take the information to your accountant and seek their advice on this matter.

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