expert claims no cgt discount on spec shares

Article in Smart Money section in Weekend AFR of April 5-6

Deloite tax adviser claims that the 12 month (and 2 days)CGT discount is not available on shares bought for capital gains only, eg speculative minings shares.

Lez Szekely of Deliottes claims that the 50% discount entitlement is only available on investments that will deliver both income and capital growth.

In the article he indicates investments such as specultaive mnining shares, which are bought for capital gains only are therefore not entitled to the discount.

He claims that although investors will often claim a discount on these type of shares, thet are not really entitled and if queried by the ATO they would have to the discount denied and be asked to pay tax on the full profit as well as interest on the full tax debt.

This is news to me, and I'm sure to many on HC. 'IF' true and accurate (I'm no tax expert by any means) this will no doubt impact many who have a 'buy and hold for 367/8 days' application.

Interesting stuff to say the least!!!!!

Disclaimer: DYOR and seek your own tax advice.