CGT Discount for Individuals: Who Qualifies and What You Get
Learn how the CGT discount can reduce your tax by half if you hold your assets for more than a year.
This scheme allows individuals to reduce the amount of tax they owe on the profit made from selling certain assets.
Who it's for
You qualify for this discount if you are an individual and you have held your asset for more than 12 months.
What you get
You receive a 50% discount on the capital gain made from the sale of your asset. This means you only pay tax on half of the profit you made.
What it costs you
There is no direct monetary cost to access this discount, but you must maintain accurate records of when you purchased and sold your asset to prove you meet the requirements.
The catch to know
The most common mistake is miscalculating the timeframe. To qualify for the discount, you must have owned the asset for at least 366 days.
How to apply
- Keep all documentation regarding the purchase and sale of your asset.
- Calculate your total capital gain for the financial year.
- Apply the 50% reduction to your qualifying gains when preparing your tax return.
- Check with the official tax portal for current rules and guidance.