Draft Taxation Determination

TD 1999/D43

Income tax: capital gains: is land under a unit of accommodation subject to the main residence exemption under Subdivision 118-B in Part 3-1 of the Income Tax Assessment Act 1997 if the taxpayer sells the unit of accommodation separately from the land?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 1999/73.

FOI status:

Not previously released in draft form

Preamble

1. No. The land does not qualify for the main residence exemption.

2. Paragraph (c) of the definition of 'dwelling' in subsection 118-115(1) brings within the definition 'any land immediately under the unit of accommodation'. It only does so, however, while the land remains immediately under the unit of accommodation.

3. If a unit of accommodation is removed from land and the land is then sold, the land does not come within paragraph (c) of the definition of 'dwelling' in subsection 118-115(1). This applies to land under all types of units of accommodation.

4. Land under a unit of accommodation qualifies for the main residence exemption only if the land and the unit of accommodation are sold together as a dwelling.

Your comments

We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Commissioner of Taxation
28 July 1999

References

ATO references:
NO 99/10480-5
BO CGT main residence summit 1999

Subject References:
accommodation
capital gains
CGT exemptions
dwelling
land
main residence
unit of accommodation

Legislative References:
ITAA 1997 118-115(1)(c)
ITAA 1997 Subdivision 118-B