Read through the thread and Im still not sure of some questions.
Questions
Scenario:I buy one batch of shares ,lets say I invest in the INDI 25.Now,2 years later I buy my second batch of the INDI 25.Now,after the 3 year period from the first day I bought my first batch of shares,I want to sell some of them.Will all my shares be clumped together as non CGT tax shares,based on the date of the last purchased shares?
FIFO. SARS generally accepts FIFO as the the way to work out the age of your shares.
How does this work?Is my whole portfolio clumped together or is each individual share different in the date of their purchase?
Each *batch* of a single type of share you buy is a "stock item" for want of a better term. Stock that you sell before 3 years attracts income tax; stock sold after 3 yaers attracts CGT.
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Also,which type of tax will I be charged if I invest in different shares at different times,is it based on the last bought shares?
If you undertstand the concept of FIFO and stock the answer to this question should be obvious.