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Taxed at Capital Gains vs Marginal rate

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Gert15
Contributor
If you have purchased a specific share on an ongoing basis where some shares have been held for more that 3 years and some for less and you sell all of your holding it that share, how are you taxed? Can the shares be identified and an accurate calculation be done or what? Thanks
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8 REPLIES 8
koos2
Super Contributor
Thanks for this query. It has bugged me for 2 years now, and still no answer. Also if i buy 1000 shares in 2012+2013+2014 of compA and sell 1000 in 2015+2016+2017 is it cgt?
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superstar
Regular Contributor
The most important thing is what were the intention at date of purchase. As difficult to prove as it might be but if you held (read bought) your shares with intention of holding them long term then they are subject to CGT and not normal tax. Change of intention does not neccesary equate to normal tax. As long as you did not buy the shares with intention of trading you should not pay normal tax on such shares but you might pay CGT
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Preston
Super Contributor
If you bought shares on 10 April 2012 and sold on 10 April 2015, then it is CGT. 3 years has elapse which will then change the classification to that of Capital gain tax.
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koos2
Super Contributor
The intention is longterm as documented in a signed last will and testament, but things might change..
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koos2
Super Contributor
So can i sell after 3 years and buy it back the same day or a few days later with the intention of increasing my base cost for cgt?
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lush
Occasional Contributor
What if I held the shares for longer than 3 years and gave them to my child, will they have to keep them for additional 3 years to qualify for CGT?
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lush
Occasional Contributor
What if I held the shares for longer than 3 years and gave them to my child, will they have to keep them for additional 3 years to qualify for CGT?
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prancing_horse
Super Contributor
It will attract CGT on your disposal, and depending on the amount donations tax as well.
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