What@Grajem12 said is correct.
For example.
You buy a share in a theortical company at $3 and the SP rises over time to $6.53. The company then announces a capital return of $2.65. The SP goes XC and drops to $3.88 as a result. Your cost base also now reduces to $0.35 for CGT purposes. If you then decide to sell you will trigger a CGT event and have to pay CGT (50% off if you have held >1y) on the capital gain which is $3.88-$0.35 = $3.53.
If you instead sold the the shares immeadiately prior to the capital return at $6.53 when your cost base was still $3, you will have to pay CGT (50% off if you have held >1y) on the cpaital gain which is $6.53-$3.00 = $3.53.
The capital return makes no theoretical difference to your CGT liabilities but what it does do is free up your capital for your to invest it elsewhere or repay eg: loan you may have taken out to buy said shares. Of course, DYOR.
What@Grajem12 said is correct. For example.You buy a share in a...
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Last
$5.79 |
Change
-0.060(1.03%) |
Mkt cap ! $6.310B | |||
| Open | High | Low | Value | Volume |
| $5.83 | $5.83 | $5.75 | $6.523M | 1.127M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2685 | $5.77 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.80 | 4310 | 2 |
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| Last trade - 16.10pm 20/05/2024 (20 minute delay) ? |
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Last
$5.76 |
Change
-0.060 ( 0.69 %) |
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| Open | High | Low | Volume | ||
| $5.80 | $5.81 | $5.76 | 51874 | ||
| Last updated 15.55pm 20/05/2024 ? | |||||
| BLD (ASX) Chart |