Edited version of private advice

Authorisation Number: 1051884909034

Date of advice: 12 August 2021

Ruling

Subject: CGT - distribution of capital

Question

Are you liable to pay capital gains tax (CGT) in relation to the sale of the property which you had a 50% legal ownership interest?

Answer

No.

You owned this property as the trustee of the Trust, and this property was sold by the Trust, and you received a distribution from the trust as a beneficiary of the Trust. Therefore, no CGT event has happened to you in your personal capacity, and the distribution from the trust is a distribution of capital which is not a taxable distribution.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

XX XXXX 20XX

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

Your parents purchased a property in in 19XX.

Your parent passed away in XXXX 19XX, with their share in the property passing to your other parent.

On XX XXXX 19XX your other parent transferred the legal title into yours and your sibling's names as trustees of the Trust.

You became a permanent Australian resident on XX XXXX 20XX.

Your other parent passed away in XXXX 20XX.

The property was sold in XXXX 20XX by the Trust, with the proceeds of the sale distributed by the solicitor according to the trust deed.

Relevant legislative provisions

Income Tax Assessment Act 1996 section 104-1

Income Tax Assessment Act 1996 section 104-7