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Edited version of your private ruling
Authorisation Number: 1012320482868
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Subject: Capital gains tax - deceased estate - shares
Question:
Are the shares acquired prior to 20 September 1985?
Answer:
Yes.
This ruling applies for the following period:
Year ended 30 June 2013
The scheme commenced on:
1 July 2012
Relevant facts:
Your parent passed away prior to 20 September 1985 without leaving a will.
You are the only beneficiary to the estate of your late parent.
Your parent owned shares in a company which were acquired prior to 20 September 1985.
An annual return completed prior to 20 September 1985 of the company states that the shares were held by the estate of your late parent.
An annual return completed after 20 September 1985 of the company shows that the shares held by the estate of your late parent had been transferred to you.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 104-10
Income Tax Assessment Act 1997 Section 128-15
Reasons for decision:
If you acquire an asset owned by a deceased person as their legal personal representative or beneficiary under the capital gains tax (CGT) provisions, you are taken to have acquired the asset on the day the person died. If that was before 20 September 1985, you disregard any capital gain or capital loss made from the asset.
In your case, as your parent had acquired the shares prior to 20 September 1985, they are pre CGT shares in accordance with the CGT provisions.
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