| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051574038924
Date of advice: 17 October 2019
Ruling
Subject: Capital gains tax - trust - disposal
Question:
Did you own an interest in the Property for capital gains tax (CGT) purposes?
Answer:
No. Based on the information provided, we view that you did not have a beneficial ownership interest in the Property and had held the interest in the Property on trust.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Your child (Person A) wished to purchase a property but did not have sufficient funds to finance the purchase of a property.
You were included on the title of the property to enable Person A to obtain a loan.
The Property was purchased in 19XX.
You and your spouse prepared a letter shortly after your will was prepared to explain what you had included in your finalised wills.
A contract for the sale of the Property was entered into in late 20XX, with settlement occurring after a number of months.
Persons A have treated the property as their main residence and were responsible for all costs in relation to the Property and the receipt of all rental income during the period the Property was rented out.
Persons A received all of the capital proceeds from the sale of the Property.
A capital gain was made on the sale of the Property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Part 3-1
Income Tax Assessment Act 1997 Part 3-3