Jessie you are right that a preference share is an exempted financial arrangement. However I dont think this gets you off the capital gains tax hook. It seems clear to me if the issuer redeems or the pref is sold and you have purchased at a discount the gain on sale or redemption should be taxable on genral principles of what constitutes income. Its all about intent: if you intend to sell than the gain or loss on sale is taxable. This is unlike a rental property where I think it can be more readily argued that gain on sale was incidental to the primary purpose of gaining rent.
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