Private ruling: Capital gains tax
Date of advice: 11 July 2019
Published: September 2019
Ruling period: Year ending 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2019

Ruling: Q1: Will a capital gains tax event occur for you when the property is sold? | A1: No It is considered that while you are the legal owner of the property (your name is on the title deed), however you are not the beneficial owner (further information on the definition of a beneficial owner can be found in Taxation Ruling IT 2486 and Taxation Determination TD 92/106). The beneficial owner is Individual A. The sale of the property will not result in a capital gains tax event for yourself as you are not the beneficial owner of the property.

Relevant facts and circumstances: Your name was transferred to the title deed of the property owned by Individual A, for security purposes following a relationship breakdown. No money was transferred from you to Individual A; you had no financial interest in the property. You have not paid for the mortgage or invested in the property. You will dispose of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 104-10(2)