Ask Tax Questions
What is the Capital gains tax improvement threshold, how is it applied?
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
CGT is always are complex area,In relation to Capital Gains Tax (CGT) Improvement Thresholds, Certain improvements to pre-CGT assets will be deemed to be separate post-CGT assets where the cost base of the improvement (and 'related improvements') exceeds both the improvement threshold for the income year in which a CGT event happens in relation to the original asset (e.g., the sale of the asset) and 5% of the capital proceeds from the event. I hope this assists.Leave a Comment 188 weeks ago