Hi Random22
The first thing to note is that the LIC capital gains discount does not apply when you sell the shares - it applies to the dividends they pay while you hold the shares. In other words, when the LIC realises a capital gain (e.g. when it sells into a takeover), this capital gain is discounted by 50% because the LIC is a long-term (>1 year) holder. This discount is then passed onto the shareholder in the dividend, meaning that 50% of the "LIC capital gain amount" contained within the dividend can be used as a tax deduction in your annual tax return. (See http://www.ato.gov.au/individuals/content.asp?doc=/content/71594.htm for further information.)
As with any stock, if you hold a LIC for at least a year, and then sell it, you pay CGT on only 50% of your capital gain.
As for buying LICs at a premium to NTA: although it's always nice to be able to buy at par, or at a discount to NTA, the best way to invest in LICs is to do so periodically whenever you can afford to. There's no merit in sitting on the sidelines waiting for the SP:NTA ratio to decline while the SP continues to rise. If you keep it simple and just buy on a regular basis, then you'll be buying at a premium sometimes, and a discount at other times, but overall you'll be accumulating a good asset.
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