Tax Information
Cost Base Allocation
As securityholders in Lend Lease Primelife (LLP), you own shares in an Australian company, Lend Lease Primelife Limited (LLPL) and units in a trust which is an Australian registered scheme, Lend Lease Primelife Trust (LLPT). The share in LLPL and the unit in LLPT form a ‘Stapled Security’ and cannot be separately dealt with or traded. Each share in LLPL and each unit in LLPT remain separate assets for Australian capital gain tax purposes.
The subscription price comprises the total application price which is payable for one ordinary share in LLPL and one ordinary unit in LLPT. As result, any market price for each Stapled Security will be the combined price for one ordinary share in LLPL and one ordinary unit in LLPT.
Should the total non-assessable distributions received by an investor exceed the investor’s tax cost base for their LLPT units, the excess will be a capital gain and wil be taxed at the investor’s marginal tax rate. The gain may be eligible for the CGT discount if derived by an individual or trustee or by a superannuation fund.
To calculate your cost base for each separate capital gains tax asset, you will need to split the acquisition cost of each Stapled Security between two assets. This split needs to be done on a reasonable basis. While it is for you to determine how to split the acquisition cost of your Stapled Securities, you might decide to use the relative Net Tangible Assets (NTA) of LLPL and LLPT at the date of acquisition of your Stapled Securities to do this. The relative NTA of LLPL and LLPT at various dates are set out below:
The taxation consequences of any investment in LLP Stapled Securities will depend on your particular circumstances. Potential investors and LLP Securityholders should obtain their own tax advice in relation to the taxation implications associated with their investment in LLP.
At Stapling
- Company 60%
- Trust 40%
30 June 2008
- Company 61%
- Trust 39%
30 June 2009
- Company 57%
- Trust 43%
Advice relating to personal tax issues should be obtained from your Stockbroker, Solicitor, Accountant or Professional Advisor.
Please click here to download the Tax Guide 2008.