This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
For capital gains tax purposes, there are exceptions to the rule that what is attached to the land is part of the land. In some circumstances a building or structure is considered to be a separate CGT asset from the land.
A building or other structure on land, or a capital improvement made to land, that you acquired on or after 20 September 1985 is, in limited circumstances, considered a CGT asset separate from the land. This applies to the building or structure if you entered into the contract for construction, or construction commenced, on or after that date.
Land you acquire on or after 20 September 1985, adjacent to land you acquired before that date, is taken to be a separate CGT asset even if it and the adjacent land is merged into one title.
On 1 April 1984 Robert bought a block of land. On 1 June 1999 he bought another block adjacent to the first one. Robert amalgamated the titles to the 2 blocks into one title.
The second block is treated as a separate CGT asset acquired on or after 20 September 1985 and therefore subject to the capital gains tax rules.
Last modified: 18 Sep 2009QC 18323