CGT clock...

Discussion in 'Share Investing Strategies, Theories & Education' started by Sacko, 29th Jun, 2009.

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  1. Sacko

    Sacko Well-Known Member

    Joined:
    1st Jul, 2015
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    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?
     
    Sacko, 29th Jun, 2009
    #1
  2. ashes

    ashes Well-Known Member

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    19th Jun, 2015
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    110
    Location:
    Brisbane
    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.
     
    ashes, 29th Jun, 2009
    #2
  3. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
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    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.
     
    AsxBroker, 29th Jun, 2009
    #3
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