Introduction

This page shows you the additional steps when processing the CGT relief event for segregated funds that have investments which had a partial sale between 09/11/2016 and 30/06/2017. Please view the video to see how this process works.

Workaround steps

For purchases that happened after 30 June 2016 but before 9 Nov 2016

Prerequisites:

• The unitised investment was purchased after 1 July 2016 but before 9 November 2016.
• Some of the units were sold between the CGT relief date and 30 June 2017.
• The remainder of the units were in an unrealised gain position.
• The fund is applying the transitional CGT relief (segregated method) before the partial disposal.

Steps:

1. Process two acquisition events, one to represent the parcel that would be sold later and the other is the remainder left that will be applied CGT relief.
2. Process the sale of the relevant parcel.
3. Match off the parcel that is sold by
   

   Navigate to Fund level > Periodic Processing > Maintain Parcel Matches
   

4. Process the CGT relief for remaining parcels based on cessation time by
   

   Navigate to Fund level > Members > CGT Relief Application

For existing parcels held before 1 July 2016

Prerequisites:

• The unitised investment was purchased before 1 July 2016.
• Some of the units were sold between the CGT relief date and 30 June 2017.
• The remainder of the units were in an unrealised gain position
• The fund is applying the transitional CGT relief (segregated method) before the partial disposal.
• CGT relief date has been determined
• No period update was run from 1 July 2016.

Steps:

1. Process the sale.

2. Generate these three reports to help to identify which parcel is required to be split and how it should be split:

   Report	Reporting Period	Purpose
   Capital Gains Relief Analysis - Segregated and tick 'Yes' to 'Exclude Losses' option	By default	Identifies the parcel that has a partial disposal and is eligible for the CGT relief. This will have an asterisk (*) next to it. This parcel is the one that will need to be split.
   Unrealised Capital Gains report	30 June 2017	Reflects the remaining cost base and units of the parcel
   Realised Capital Gains report and tick 'Yes' to 'Include Matched Parcels' option	From CGT relief date to 30 June 2017	Reflects the cost base and units of the parcel disposed of.

   Navigate to Fund level > Investments > Browse Holding Accounts
   

3. Select the relevant investment then click Maintain Parcel Edit Points button to manually split the parcel identified in Step 2 into two parcels: the remaining parcel and the parcel that will be disposed of.
   
   For the funds that are loaded to Class as of 30 June 2016, you should split the parcels by
   

   Navigate to Fund level > Load Opening Balances > View Parcel History
   

4. Manually match the sale against the disposed parcel created in Step 3 by
   

   Navigate to Fund level > Periodic Processing > Maintain Parcel Matches.
   

5. Process CGT relief event for the remaining parcels based on the determined CGT relief date by
   

   Navigate to Fund level > Members > CGT Relief Application 

   If you have tax deferred or tax free cost base adjustments attached to the parcel, you may consider to split them as well.

   
   

Worked example

The fund has ANZ with 2 parcels as below. On 1/6/2017, 300 units of ANZ was sold. Therefore, only 1,700 units were held throughout the pre-commencement period therefore eligible for the CGT Relief. As this fund uses "Maximise Taxable Gain" disposal method, the sale will match against the first parcel of 1000 units bought on 1/7/2012.

The fund decides to apply CGT Relief on 1/5/2017. Before processing the CGT relief event, the first parcel is required to be split into 2 parts as below:

After this step, 

Navigate to Fund level > Periodic Processing > Maintain Parcel Matches,

And manually match the sale against the disposed parcel as shown below.

Once this is done, you may proceed to process the CGT relief.

Processing partial sales after CGT relief video 

For a transcript of the video please click here