| 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: 1052165224919
Date of advice: 14 September 2023
Ruling
Subject: CGT - legal vs beneficial ownership
Question
Did you have a CGT event A1 arising from the transfer of title of the property?
Answer
The Commissioner accepts that although the property was purchased in both your father's and your names, your father held the beneficial ownership interest in the property from the date of purchase. Therefore, you had no beneficial ownership of the property are not liable to pay CGT upon the transfer of the property title to your father.
This ruling applies for the following period:
Period ending 30 June 2024
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
Your entered into a private loan agreement to assist with the purchase of a residential property for your father. Your father has limited English, does not read or write in English, and was not in a position to apply for finance for the purchase of the property on his own.
The loan agreement confirms that you held your fifty percent ownership interest in the property as trustee for your father, XXXX.
The agreement states that your fifty percent interest in the property would be transferred to your father once the loan was repaid in full and your father was in a financial position to refinance the property in his sole name.
The agreement also states that you have no beneficial ownership in the property and are only named on title for the purposes of the loan application as trustee for your father.
In XX 20XX you and your father acquired the property at XX XX XX as joint owners.
Your father was solely responsible for all mortgage repayments and all other costs in relation to the property. You did not contribute to the purchase and have not contributed to any loan repayments or property costs.
The property was never used to produce income and remained the main residence of your father.
You also resided at the property from XX 20XX until XX 20XX until you moved to your own home with your spouse.
Once your father retired and was able to access his superannuation to refinance the property to his sole ownership.
The transfer of your fifty percent ownership interest to your father was effected on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10