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FAQ: What if an asset was acquired before the valuation date?

For an asset acquired before the valuation date and disposed of afterwards, CGT will be payable only on the capital gain attributable to the period after the valuation date. In other words, any gain attributable to the pre-valuation date period is not subject to CGT. The gain attributable to the period of ownership of an asset before the valuation date is excluded from CGT by establishing its “valuation date value” on 1 October 2001 using one of three methods: market value on 1 October 2001, time apportionment and 20% of proceeds. A fourth method, namely, weighted average base cost, is available for specified identical assets such as listed shares and participatory interests in collective investment schemes.

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