Join our investing community

CGT clock...

Discussion in 'General Investing Discussion' started by Sacko, 29th Jun, 2009.

  1. Sacko

    Sacko Well-Known Member

    Joined:
    20th Aug, 2007
    Posts:
    69
    Location:
    Central Coast, NSW
    I hope somebody can help me with this question:

    I know that to recieve the 50% CGT discount an investment needs to held held for more than 12 months. But is the CGT clock based on the sell date, or on the settlement date?

    For example: If bought a parcel of shares on the 27 June 2008, would it be the contract date (27/06/09) or the settlement date (T+3) i.e the 2nd July 2008 that sets the clock ticking. Likewise if I sell the same parcel of shares today, is it the contract date (29/06/09) or settlement date (2nd July 2009) that stops the clock to ascertain whether the 50% CGT is applicable?
     
  2. ashwright

    ashwright Well-Known Member

    Joined:
    30th Nov, 2007
    Posts:
    116
    Location:
    Brisbane, Qld
    I am not sure. But I thought it was the contract date for both the buy and the sell. This is the date which you agree to take ownership of the shares. ie you control the shares from the contract date.
     
  3. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Contract date/Trade date. The settlement date is purely when the asset is actually moved from the seller to the buyer.

    Cheers,

    Dan

    PS This is general information. Speak to your registered accountant or tax adviser before doing anything.