45 Day Holding rule

Hi, My question is about the 45 day holding rule.

Scenario,

Day 1 …………I buy 1,000 shares in XYZ company
Day 250 ……..XYZ go Ex-Dividend.
Day 255………I sell my holding in XYZ.

Am I still able to claim the tax credit having held the shares more than 45 days prior to going Ex-Dividend ?

Thanks

 

A: Yes

Provided you hold the shares continuously for 45 days or more and are ‘at risk’, you are eligible to claim the franking credits. You won’t be entitled to receive the dividend unless you hold the shares over the ‘ex’ date, so your 45 day period must include the ‘ex’ date.

Regards


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