Income tax: capital gains: a taxpayer owns pre-CGT land and trees. The taxpayer sells timber according to two post-CGT contracts:
- a contract for granting the purchaser of the timber the right to enter the taxpayer's property over a period of time and remove timber as and when required; and
- a contract for the sale of the uncut timber.
How is the sale treated for capital gains tax purposes?
Please note that the PDF version is the authorised version of this withdrawal notice.TD 93/81 has been withdrawn as part of a project to review public rulings.This document has changed over time. View its history.
Notice of Withdrawal
1. TD 93/81 explains that for CGT purposes the transactions of a grant of a right to remove timber and the sale of the timber over two separate contracts together constitute the granting of a profit à prendre.
3. The issue covered by TD 93/81 is now covered in Taxation Determination TD 2018/15 Income tax: capital gains: does CGT event D1 happen if a taxpayer grants an easement, profit à prendre or licence over an asset?
Commissioner of Taxation
31 October 2018
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