Private ruling: CGT - legal and beneficial interest
Date of advice: 11 August 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 19XX

Ruling: Q1: Do you have a beneficial interest in the property and therefore will be liable for capital gains tax when you transfer your 50% share of the property to your sibling? | A1: No. We have considered your circumstances and have determined that you do not have a beneficial interest in the property and therefore you will not be liable for capital gains tax when you transfer your share of the property to your sibling.

Relevant facts and circumstances: You own a property (Property) as joint tenants with your sibling. Your sibling acquired the Property post 19XX. Due to your sibling's financial position at time, your assistance was required to purchase the property. The lending institution required you to be on the title of the Property for the purpose of a guarantee to the loan. You did not contribute funds to the purchase of the property. Your sibling has been responsible for making all loan repayments and paying for all improvements to Property since it was acquired. Your sibling has solely operated a farm on the Property without your financial assistance. Since the acquisition of the Property, you did not reside in the property and did not receive any income from the operation of the farm. You intend to transfer your 50% of the property to your sibling for no consideration.

Relevant legislative provisions: Income Tax Assessment Act 1997 section102-20 | Income Tax Assessment Act 1997 section104-10