| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051456488124
Date of advice: 20 November 2018
Ruling
Subject: Capital gains tax (CGT) and the main residence exemption
Question
Is the trustee of a special disability trust entitled to the main residence exemption in Subdivision 118-B of the Income Tax Assessment Act 1997 (ITAA 1997) for a property that was the main residence of the Principal Beneficiary?
Answer
Yes. Having considered the facts, circumstances and the relevant factors, the trustee is entitled to treat the property in the manner that the Principal Beneficiary would have. More information about special disability trusts and the main residence exemption can be found by searching for “QC55220” on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The Trust was created.
The Trust is a special disability trust established for the purpose of providing accommodation and ongoing care of the Principal Beneficiary.
The Trust was gifted the Property.
The Property was the main residence of the Principal Beneficiary and their primary carer until 20XX, when the Principal Beneficiary moved into other accommodation. After this time, the Property remained vacant.
A contract for sale was entered into and the Trustees sold the Property on 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-145
Income Tax Assessment Act 1997 section 118-218
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
