Introduction to capital gains tax

Shares and units

For CGT purposes, shares in a company or units in a unit trust (including a managed fund) are treated in the same way as any other CGT asset. You may have to pay tax on any capital gain you make on shares or units when a CGT event happens, such as when you sell them (unless you acquired them before CGT came in on 20 September 1985).

Profits on the sale of shares held in carrying on a business of share trading are included as ordinary income rather than as capital gains.

For more information about how other income tax provisions affect your share investments, refer to You and your shares. If you believe that you may be carrying on a business, refer to Carrying on a business of share trading.

CGT events affecting shares and units

If you own shares or units, some events which may result in a capital gain or loss include:

• switching units in a managed fund from one fund to another
• acquiring or disposing of shares as a result of a takeover or merger
• receiving bonus shares or units.

Records relating to shares and units

Make sure you keep detailed records of all share transactions, not only for CGT purposes but also to meet your other income tax obligations.

Capital gains tax - home

Sections within Shares and units

• CGT events affecting shares and units
• Records relating to shares and units