• Inheriting property

    When someone dies, a capital gain or loss is generally disregarded when a property passes:

    • to the deceased person's executor or other legal personal representative
    • to the deceased person's beneficiary –- such as next of kin or a person named in the will
    • from the deceased person's legal personal representative to a beneficiary.

    But this exception doesn't apply if the property passes from the deceased to a tax-advantaged entity (such as a charity) or foreign resident.

    If you inherit a dwelling or other property after CGT started on 20 September 1985 and later sell or otherwise dispose of it, capital gains tax may then apply.

    Similarly, capital gains tax may apply if the deceased person's legal personal representative sells a property as part of winding up their estate.

    See also:

    Last modified: 13 May 2015QC 23625