| 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: 1052228965140
Date of advice: 6 March 2024
Ruling
Subject: CGT - boundary realignment
Question
Will each block retain its pre-Capital Gains Tax (CGT) status when there is a boundary realignment?
Answer
Yes.
Based on the information provided to the Commissioner each block of land will retain its pre-CGT status when the boundary is realigned.
The properties will retain their pre-CGT status when the estate conducts a boundary realignment.
A boundary realignment of land does not result in a CGT event being triggered.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away a few years ago.
The deceased estate holds a number of parcels of land which are pre-CGT assets.
Property 1 was acquired by the deceased a number of decades ago.
Property 2 was acquired before Property 2.
Property 2 was the deceased primary place of residence.
Beneficiaries of the estate are both adult children of the deceased.
One beneficiary resides in the house on Property 2.
Both properties adjoin each other.
The beneficiaries intend to do a boundary realignment whilst the assets are still held in the name of the estate.
Property 1 would be increased and property 2 would be reduced as part of the realignment.
The estate still needs to lodge relevant plans and seek approval from the relevant council.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 108-5