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Edited version of your written advice
Authorisation Number: 1051519596443
Date of advice: 18 May 2019
Ruling
Subject: Foreign capital gain - assessable
Question 1
Is your share of the proceeds received for the sale of land in the UK subject to capital gains tax (CGT)?
Answer 1
Yes, as you are a resident of Australia you are subject to CGT on your worldwide net capital gains. The tax treaty between the UK and Australia does not preclude the taxation of capital gains derived in the UK by Australia.
Question 2
Are you entitled to the general discount on the capital gain, in accordance with division 115 of the Income Tax Assessment Act 1997?
Answer 2
Yes.
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You are a resident of Australia for income tax purposes.
You are a partner in a partnership.
The partnership owns property in Country A.
The partnership disposed of the property.
You are entitled to a portion of any net proceeds from the sale of the property.
You made a capital gain.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 section 10-5
Income Tax Assessment Act 1997 section 102-5
Income Tax Assessment Act 1997 division 115
International Tax Agreements Act 1953 section 3AAA