Join our investing community

Capital Gains Tax on shares

Discussion in 'Shares' started by Investor11, 19th Oct, 2011.

  1. Investor11

    Investor11 New Member

    Joined:
    19th Oct, 2011
    Posts:
    1
    Location:
    Melbourne
    I am looking for some general advice on options available to me.

    In 1997 I received $8000 in shares when Colonial Mutual went public.
    I have reinvested dividends and these shares are now worth approx. $80,000
    I am considering selling them but am unsure of the Capital Gains implications. I have paid tax on the dividends over the past 4 years.

    Any advise would be appreciated.
     
  2. Andrew Newman

    Andrew Newman Well-Known Member

    Joined:
    5th Nov, 2008
    Posts:
    175
    Location:
    Melbourne
    Hi Investor11

    For your information, Capital Gains Tax (or CGT) is the tax paid on the growth of an investment when sold. This is different to the tax paid on dividends.

    A CGT discount is available if you have owned the investment for more than 12 months. The discount applying to any capital gain made by an individual is 50%.

    Reinvested dividends are used to purchase additional shares at new prices.

    I recommend you seek advice from a professional.