Depending on your personal circumstances, there may be income tax consequences from selling your Shares in Longevity.
We have requested the Australian Taxation Office (ATO) to provide advice in a Class Ruling, which will explain how in this instance, the tax law will be applied to participants of the Buy-back scheme. The Class ruling is expected to be published after the Buy-back is completed. If the Buy-back occurs on or before 30 June 2020 (which is currently planned), additional income may be reportable in your 2020 tax return – which, for most taxpayers, covers the 12 month period to 30 June 2020.
Subject to the ATO’s Class Ruling, we currently expect the Share Buy-back price of $1.78 to be treated as having two components – for income tax purposes:
a. A capital component – of $0.85 per share.
b. An income component, to be treated as an unfranked dividend – of $0.93 per share.
We recommend you consult your tax agent or accountant for advice relevant to your specific financial situation.