How to handle Magellan Restructure in Sharesight? (MGG and MGE conversion to MGOC)

As per the instructions issued by Magellan on 30 June 2021, the Restructure is a Capital Gains Tax (CGT) event, but investors may be eligible to elect for CGT scripfor-scrip rollover relief to disregard capital gains.
To be eligible to elect for CGT scrip-for-scrip rollover relief, the MGE/MGG unitholder must first determine whether a capital gain or a capital loss arose as a result of the Restructure.

Step 01.(A) is to identify, if you have a capital or loss.
Determine your cost base or reduced cost base for units held in MGE or MGG.
MGE and MGG unitholders are advised to consult their own professional tax adviser in light of their particular circumstances.

Step 01.(B) Calculate the capital proceeds from the restructure.
The price used for this calculation has to be discussed with your professional tax adviser based on the valuation method used as this price can have a considerable impact on your capital proceeds.

Step 01.(C) Calculate your net capital gain or loss
Cost base or Reduced cost base - Capital Proceeds

Once the above is done, to record this in Sharesight,

If you are eligible for a capital gain and eligible to elect for CGT scripfor-scrip rollover relief;

1.Use the merge feature to transfer your units to MGOC. Date of transaction 8th December 2020.

2.Market price of cancelled holding’ should be the price you have used to calculate the capital proceeds at step 01. (B) above.

If you have incurred a capital loss;

1.Add a cancellation entry under your MGE/ MGG holding. Date of transaction 8th December 2020.
Share price for cancellation entry = capital proceeds as per step 1.(B)/ number of MGE/MGG shares held

2.Add MGOC as an opening balance at the price used to calculate the capital proceeds at step 1.(B)

3.This will be now reflected in your CGT report.

If you have any questions about your tax position we recommend you contact your accountant or tax advisor.