Taxation Determination

TD 93/36A1 - Addendum

Income tax: capital gains: what are the capital gains tax consequences where a legal personal representative (LPR) purchases an asset to satisfy a general legacy?

This Addendum amends Taxation Determination TD 93/36 to reflect the rewritten capital gains tax provisions in Part 3-1 of the Income Tax Assessment Act 1997.


TD 93/36 is amended as follows:

1. Paragraph 2

Omit the second sentence; substitute:

Accordingly, the acts of the LPR are taken to be the acts of the beneficiary (section 106-50 of the Income Tax Assessment Act 1997 (ITAA 1997)).[F1]

2. Paragraph 3

Omit the paragraph; substitute:

3. No CGT event happens when legal ownership of the asset is transferred from the LPR to the beneficiary because section 106-50 effectively treats the beneficiary as having transferred the asset to themselves. That is, section 106-50 treats the transfer to the beneficiary as an act done by the beneficiary'.

3. Example

Omit '1992'; substitute: '2008' (both occurrences).

4. Related Determinations

Omit related determinations (including heading).

5. Subject References

Omit the subject references; substitute:

CGT assets; CGT cost base; CGT deceased estates; CGT events; legal personal representatives; trust beneficiaries

6. Legislative References

Omit the legislative references; substitute:

ITAA 1997 106-50

This Addendum applies from 14 September 2006, the date of effect of the repeal of the former capital gains tax provisions in Part IIIA of the Income Tax Assessment Act 1936 by Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006.

Commissioner of Taxation
21 April 2010


All subsequent legislative references are to the ITAA 1997 unless indicated otherwise.


ATO references:
NO 2006/20258

ISSN 1038 - 8982