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rmsj(I'm new)I'm new
11 Feb 2025

Hi! My parents would like to transfer their shares to me. I know the off-market transfer of shares from them to me would trigger a CGT event for them in the financial year of the transfer but if I was to sell the shares very soon after the transfer, would I pay CGT? And if I did, would I pay CGT on the gain from when the shares were transferred to me to when I sell (e.g. 3 months of ownership) OR on the gain from when they bought the shares to when I sell them?

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175 views
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Taxduck(Taxicorn)Taxicorn
12 Feb 2025

Your cost base (purchase price) will be the market value of the shares on the date of transfer (i.e. your parents deemed sale price).

CGT is calculated on sale price - cost base. Whether you pay CGT depends on any gain and your other taxable income. If you hold the shares for more than 12 months there is a 50% discount on any gain.

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
12 Feb 2025

Your cost base (purchase price) will be the market value of the shares on the date of transfer (i.e. your parents deemed sale price).

CGT is calculated on sale price - cost base. Whether you pay CGT depends on any gain and your other taxable income. If you hold the shares for more than 12 months there is a 50% discount on any gain.

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