Managing Capital Gains Tax on Inherited Shares

Managing Capital Gains Tax on Inherited Shares

Published: 29 June 2025


3 min read

Inherited shares, whether in listed companies or private businesses, can also attract Capital Gains Tax (CGT) depending on how and when they are sold. Some practical strategies can help to manage tax and improve outcomes for beneficiaries.

Access to the 50% CGT Discount

If you sell inherited shares at least 12 months after it was first acquired, you may be eligible for the 50% CGT discount.

  • For pre-CGT assets, the acquisition date is the date of death.
  • For post-CGT assets, the acquisition date is the deceased’s purchase date. This rule applies to most individuals and trusts.

Inherited Shares: Key Considerations

When shares are sold by a beneficiary, CGT applies. The cost base is determined according to whether the shares were acquired by the deceased pre- or post-CGT.

If you sell inherited shares at least 12 months after it was first acquired, you may be eligible for the 50% CGT discount.

Making the most of inherited shares often involves looking beyond the immediate tax, especially if those shares represent ownership in a family business.

For more detail on pre-CGT and post-CGT definitions, and for guidance on CGT for other assets including property, refer to our comprehensive inheritance tax article .

Need Support With Inherited Shares or Succession Planning?

At BlueRock, we understand the complexities of inheritance, family succession, and intergenerational wealth transfer. We work closely with families to help them navigate these decisions in all phases of their journey.

Contact us via the form below for personalised advice tailored to your situation.

Disclaimer:
The content is intended as general information only and should not be considered as advice on any matter and should not be relied upon as such. This has been prepared without taking into account any individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information in regard to these factors before acting or seek advice before making any financial decisions. Blue Rock Investments (Melb) Pty Ltd is the holder of an Australian Financial Services Licence (AFSL No: 335588).

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