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How to calculate Capital gains tax on shares I have received for free.

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Hey there, so a while back when I was working for BWS and Covid had only just started rearing its ugly head. We received a thank you gift from the company in the form of shares in Woolworths. I have recently decided to sell them for a bit of extra cash and was wondering how I would go about the tax side of things, as I didn't actually buy the shares myself. I received the around the 1st of July last year.

 

Thanks in advance

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Devotee

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Generally, if you did not pay or give any consideration for an asset you acquired, the cost base for purposes of calculating the capital gain is its market value at the time. However, if the assets are shares (or rights/options) and those shares were issued/allotted by the company to you but you don't pay anything, then the 'market value substitution' rule won't apply and the cost base is nil

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Devotee

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CGT will be based on value of shares when you acquired them

Most helpful response

Devotee

Replies 0

Generally, if you did not pay or give any consideration for an asset you acquired, the cost base for purposes of calculating the capital gain is its market value at the time. However, if the assets are shares (or rights/options) and those shares were issued/allotted by the company to you but you don't pay anything, then the 'market value substitution' rule won't apply and the cost base is nil