Income tax: capital gains: is a principal residence exemption available where a dwelling is owned by a family company or family trust?
Please note that the PDF version is the authorised version of this withdrawal notice.This document has changed over time. View its history.
Notice of Withdrawal
1. CGT Determination Number 58 (TD 58) explains that the principal residence exemption is not available to a so-called 'family company' or 'family trust' because paragraph 160ZZQ12(a) of the Income Tax Assessment Act 1936 (ITAA 1936) requires that the dwelling be owned by a natural person.
3. TD 58 involves a straight application of the law. Subsection 118-110(1) of the Income Tax Assessment Act 1997 (ITAA 1997) makes it clear that in the general case, the main residence exemption is only available to an individual (defined in subsection 995-1(1) of the ITAA 1997 as a natural person). Subsection 960-100(4) of the ITAA 1997 goes on to provide that if a provision refers to an entity of a particular kind, it refers to the entity in its capacity as that kind of entity and not in any other capacity.
Commissioner of Taxation
10 March 2010
Principal residence exemption
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