CGT Discount: Who Qualifies and What You Get
Learn how you might reduce your capital gains tax by half if you hold certain 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
This discount is available to individuals who have held an asset for more than 12 months before selling it.
What you get
If you meet the time requirement, you can receive a 50% discount on your capital gains tax. This means you only pay tax on half of the profit you made from the sale.
What it costs you
There is no direct fee to access this discount, but you must keep accurate records of when you purchased and sold your assets to prove you held them for the required timeframe.
The catch to know
This discount is not available to companies. It also does not apply to assets that are part of short-term trading.
How to apply
- Keep detailed records of your asset's purchase and sale dates.
- Calculate your total capital gains for the financial year.
- Apply the discount to the portion of the gain that qualifies.
- Report the details in your annual tax return.