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Chapter 3 - Keeping records

Last updated 30 August 2010

You must keep records of everything that affects the capital gains and capital losses that you make for five years after the last relevant CGT event has happened. There are penalties if you do not keep adequate records.

Keeping adequate records of all expenditure for each asset will help you correctly work out the amount of capital gain or capital loss you have made when a CGT event happens to it. It will also help make sure you do not pay more capital gains tax than is necessary.

If you leave an asset to another person when you die, the asset may be subject to capital gains tax when a CGT event happens to that asset in the future, for example, if your daughter (the beneficiary) sells the house (the asset) you have left her in your will.

You can help your beneficiaries reduce the impact of capital gains tax by making sure that you keep all relevant documents relating to assets you acquire.