Australia's Insignia agrees to $2.2 billion takeover by CC Capital, ending bidding war
Under the agreed deal, CC Capital will pay shareholders A$4.80 per share in cash.
That represents a 22.14% premium to Insignia's closing price on Monday. However, it's slightly below CC Capital's improved bid of A$5 per share it made in March to match Bain Capital's A$3.34 billion offer before the U.S. private equity firm withdrew it in May.
The 178-year-old Australian wealth manager had initially rejected Bain's December approach, deeming it insufficient, sparking a bidding contest when CC Capital Partners entered as a rival suitor.
Insignia's board unanimously recommended shareholders approve the scheme of arrangement "in the absence of a superior proposal".
($1 = 1.5337 Australian dollars)
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'Lettings relief used to help with this, but it was heavily cut back in 2020. Now, most of the gain will be taxed at 18 per cent or 24 per cent, depending on your income. 'That's a big hit for something that might have started off as a more of a stopgap solution.' However, it's worth pointing out that when someone moves out of their main home, they won't forfeit all their CGT relief. They will lose it for the years the property is let out, so when they sell they'll need to work out the proportion of time they lived in the home compared to the years it was let out. PRR also applies in full for the last nine months of ownership, whether or not someone lives at the property - provided the property was their main residence at some point. For example, if someone bought a property in 2010 and sold it in 2025, that's 15 years or 180 months in total. If they lived there for 10 years (120 months), they'd get PRR relief for 129 months (the 120 they lived there plus nine bonus months). That means 71 per cent of any gain would be completely tax-free. If they decided not to sell the property and rent it out, then only the remaining 29 per cent of the gain, representing the rental period, would be subject to capital gains tax. Eamon Shahir, founder of the online accountancy service Taxd Can it still make sense to let out your previous home? Ultimately, avoiding a potential CGT bill should not be the main reason for making a decision about whether to keep a property, rather than selling it. If someone could benefit from the rental income and feel the home will increase in value in the future, then there is arguably a strong reason to keep it as an investment. 'CGT is not necessarily a deal-breaker,' says Shahir of Taxd. 'It really depends on each person's specific situation, and once you understand how CGT works, keeping a property as a rental can still make perfect financial sense. 'And, with CGT, you're only ever taxed on the gain in the property's value, so you're never actually worse off for having owned it. 'The question is whether the rental income plus remaining capital growth makes it worthwhile. He adds: 'It often works well to let your property if you expect continued property price growth, rental yield after tax looks attractive, or you bought the property years ago and have already banked significant tax-free gains having lived there. 'On the other hand, it might not work if your property has already seen most of its gains and values are now stagnant or rental yields are poor.' There are also certain rule quirks that will benefit some people more than others, according to Shahir. 'Expats have a major advantage as CGT is only calculated on gains since 2015, which can make huge savings,' he says. 'And, if you move abroad for work, and then come back to live in your property - you will still qualify for PRR. 'For most people it depends on the long term goal. Holding the property and letting it out can be good as additional rental income, and potential CGT or PRR relief is available. Each individual should analyse, evaluate or seek tax support.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
