and navneet, if you buy more shares for ST trading, you can...

and navneet, if you buy more shares for ST trading, you can choose which shares you sell, when you trade.

Therefore if you choose the shares that you have just recently bought (as the shares sold in this 'trading' type transaction), then you would have to pay tax on this profit (assuming you make a profit) at your marginal rate (cos 50% CGT discount only applies to shares held for over a year )........... which would still leave the LT share positions intact, thus eligible for the 50% discount after holding for one year

My point in general is, that if you do enough of these types of ST trades, then eventually (after passing some threshhold) you would be reclassified as a trader by the Tax Office, and lose your 50% CGT discount

The grey area is at what point do you pass this threshold !....and the Tax Office definition itself is somewhat ambiguous

Any other investment profits separate from share trading would be taxed at your marginal rate.....except for property held for over a year..etc...etc

This is my understanding of the 'explanations of my accountant' navneet, and hence may not necessarily be 100% correct.

good luck