On Capital Gains Tax- the dates matter!
Did you know that the date on which you sign a contract (not when you pay for what you’ve bought) is THE date for Capital Gains Tax (CGT) purposes?
We often see people try to “manage” their CGT liabilities by signing a contract prior to the end of a financial year and then settling the contract after the year end. Sounds great in theory. But it doesn’t work.
CGT law holds that it is the date of entering in to a contract that is the relevant date for CGT purposes.
If you are considering purchasing or selling a capital asset (rental property, business or the like), you might want to have a talk to us first. Getting the documents and dates right can help you manage your tax liabilities in a far more effective way.