Portfolio transaction handling for Scheme Implementation Deed?

Reporting & tax
1

I’m still pretty new to share trading and Sharesight as well and come across a situation where I do not know how to deal with this in Sharesight’s portfolio listing and tax reporting setup.

I bought 10K shares in Stock X last year, but now they’ve been acquired by Stock Y and share exchange gave me 2.5K shares in Stock Y. The date for this transaction according to CHESS is Feb 16, 2022.

Stock X has entered into a Scheme Implementation Deed with Stock Y for the acquisition by Stock Y of all of the issued shares in Stock X by way of scheme of arrangement (Scheme).

So as I understand it I treat this as a manual transaction for Stock X as a ‘sell’ transaction for the market price on Feb 16, 2022? And treat Stock Y as a manual buy transaction for the price on Feb 16, 2022?

Or would it be like outlined in Afterpay/Block and use merge feature How to handle the Afterpay and Block merger | Sharesight Australia Help ?

2

Hi @GeorgeL welcome to the community! :wave:

So firstly, selling your stock will trigger a CGT event for the original stock. Typically in these scenarios, as a company is acquired by another you’ll just need to use the merge tool as outlined below: