Tax & Superannuation: Capital Gains - Guides
Capital Gains
3. What are CGT Events?
Last updated: 01 Jul 2015
- In general CGT is applicable only to assets acquired after 19 September 1985. These are normally referred to as ‘CGT assets.’ Therefore if you sell an asset that was acquired before that date no CGT will be payable except in specific circumstances. However you may be liable to income tax on the profit made if you are in the business of dealing with such assets.
- CGT assets are not only land and other tangible assets they also include shares in companies and interests in trusts. Goodwill in a business is a CGT asset.
- The law contains several events that can result in capital gain or loss. The most common among these ‘CGT events’ are:
- disposal of a CGT asset;
- loss or destruction of a CGT asset;
- cancellation, surrender or similar dealings with a CGT asset;
- end of an option to acquire shares;
- creating contractual or other rights;
- creating a trust over a CGT asset;
- transferring a CGT asset to a trust;
- converting a trust to a unit trust; and
- capital payment for trust interest.
View more Information on Tax & Superannuation