Taxation of individual shares versus unit trusts?
By Marc Sevitz · Updated
BUT - if I purchase unit trusts, as I understand it, I can sell them at any time (no 3 year waiting period), and only CGT will apply.
Is my understanding correct, or does the three year rule apply to unit trusts as well?
The three year rule deems all equity investments as capital, but that does not mean that at a time before the three years are up you cannot sell these equities and have them be of a capital nature. It would depend on your original intention when purchasing the shares, whether it was for a scheme of profit making or did you intend to hold them as an investment.