| Disclaimer 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: 1051900584840
Date of advice: 23 September 2021
Ruling
Subject: Pre-CGT assets
Question
Is the sale of your XXX properties (excluding any major capital improvements made post 20 September 1985) that were acquired prior to 20 September 1985 subject to capital gains tax (CGT)?
Answer
No. The sale of the original properties is not subject to CGT as it is considered to be a pre-CGT property. It has been satisfied that the pre-CGT assets have been held by the same ultimate owners at all times from immediately before 20 September 19685 to the disposal of the asset.
Any major capital improvements made to the properties post 20 September 1985 are considered separate assets and may be subject to CGT.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
19 September 19XX
Relevant facts and circumstances
You purchased XXX residential properties prior to 20 September 1985.
The shareholders of the company prior to 20 September 1985 were Person 1, Person 2 & Person 3.
Person 3 passed away on XX XXX 19XX and their shares were transferred to Person 4.
An additional XXX ordinary shares were issued on X XXX 19XX to Person 1, Person 2 & Person 4.
All XXX properties were sold during the 20XX financial year.
One property had capital improvements of $XXX,XXX completed during the 20XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 149