Join our investing community

Bonds and capital gains

Discussion in 'Accounting, Tax & Legal' started by broadscott, 7th Jul, 2010.

  1. broadscott

    broadscott Active Member

    15th Oct, 2008
    Hi all,

    I am looking at putting ~ 1/3 of our investment pool into cash. The easiest option is a term deposit with a bank, but I was interested in government/corporate bonds. Am I correct in understanding that if you have a term deposit or high interest bank account you must pay tax on 100% of the interest each year? Is this the same with bonds or are they more equivalent to shares whereby if you have held them for >12mnths you only pay capital gains on 50% of gains?