What is a LIC capital gain?
A LIC capital gain is a capital gain made by a listed investment company from a capital gains tax (CGT) event that happens on or after 1 July 2001. A company that became a listed investment company after 1 July 2001, can only make a LIC capital gain from a CGT asset it acquired after it became a listed investment company. In certain cases, assets acquired by a company after it became a listed investment company will be treated as having been acquired before that time (for example, where the asset stops being trading stock or it has been rolled over). Example In December 2008, Beejay Investments restructured its portfolio of investments to meet the LIC requirements. As part of this process, it determines that certain assets in its trading portfolio will no longer be held as trading stock. Instead, those shares in listed companies will be held for dividend flows and longer-term growth. Section 70-110 applies at that time and Beejay Investments is treated as having acquired those shares a
