Trading between two companies

[AngusSmart]

I've done a search and not sure on what the correct terms are..

But i want to trade one of my holdings into another. now i have made a profit on the first company and dont want to have issues with tax etc.

so company AAA @ 30c is the first and BBB @ 40c is the new one i wish to swap over to...

if i do the swap over today and make it so nothing hits my bank account will this effect my tax at the end of the year?

have i made sense and what are the correct terms for what i am doing?

 

[skc]

I've done a search and not sure on what the correct terms are..

But i want to trade one of my holdings into another. now i have made a profit on the first company and dont want to have issues with tax etc.

so company AAA @ 30c is the first and BBB @ 40c is the new one i wish to swap over to...

if i do the swap over today and make it so nothing hits my bank account will this effect my tax at the end of the year?

have i made sense and what are the correct terms for what i am doing?

Selling AAA is a CGT event so tax is payable on the profits. What you do with the sale proceeds have no bearing on your CGT liability from my understanding.

 

[sammy84]

As both companies are owned by you, you could be eligble for a CGT rollover.

 

[SilverRanger]

Beware of the statement above as I think this is mainly applicable when there is a merger or take over event involving the stock you own, and even in a M&A the roll over needs to be approved by the ATO on a case by case basis.