Capital Gains Tax Determination

TD 56W

Capital gains: what are the CGT consequences of a lessee incurring capital expenditure on improvements to leased property?

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FOI status:

Notice of Withdrawal

1. Taxation Determination TD 56 is withdrawn with effect from today. It is replaced by Taxation Determination TD 98/23, which applies to capital expenditure on improvements to leased property incurred by a lessee both before and after the beginning of the 1998-99 income year.

2. There is no material change from the views that were expressed in TD 56. However, TD 98/23 includes a reference to the cost base recoupment provision (subsection 110-25(8) of the Income Tax Assessment Act 1997), which now includes a change made to clarify that a recoupment of expenditure cannot both reduce the cost base and be included in assessable income. The change adopts the Commissioner's interpretation of the old law.

Commissioner of Taxation
28 October 1998

This Determination has been replaced by TD 98/23.

References

ATO references:
NO BRI CG ITD 98; NAT 98/6645-1

Related Rulings/Determinations:

CGT 46, now TD46
CGT 47, now TD 47
CGT 48, now TD 48

Subject References:
Leased property
capital expenditure by lessee
improvements

Legislative References:
160ZH(1)(c)
160ZH(9)
160ZD(2)
160ZV