Private ruling: CGT property - majority underlying interests
Date of advice: 4 April 2022
Published: June 2022
Ruling period: 30 June 20XX | 30 June 20XX | 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: What are the CGT consequences for the adult grandchild 'X' who now has a greater fixed entitlement of 30%? | A1: There are no CGT consequences for the adult grandchild 'X' who now has a greater fixed entitlement of 30%.

Relevant facts and circumstances: The deceased died in 19XX. A testamentary trust was created in 19XX which included the family home. The surviving spouse lived in the family home until 19XX. From 19XX to 19XX it was rented out as a commercial property. In 19XX, the property was demolished and several new shops were constructed. The testamentary trust had distributed fixed entitlements in accordance with the deed as follows: • Adult Child A = 25% • Adult Child B = 25% • 10 Grandchildren (now adults) = 5% each In 20XX, Adult Child A passed away, leaving their fixed entitlement to their son ('X') who was then entitled to their 25% share in accordance with the trust deed. That is, 'X' is now entitled to 30% of the income and capital of the Trust (his original 5% + parent's 25%).

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 149-10 | Income Tax Assessment Act 1997 Section 149-15 | Income Tax Assessment Act 1997 Section 149-30