Private ruling: Capital gains tax - sale of bullion
Published: June 2012
Ruling period: Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: Question and answer | Will there be any capital gains tax consequences for you when you sell the gold and silver bullion? | No.

Relevant facts and circumstances: You are non-residents of Australia. You purchased gold and silver bullion. The bullion is stored in Australia. You intend to sell the bullion while you are non-residents of Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 855.

Reasons for decision: Summary: A foreign resident's liability for capital gains tax (CGT) is based on whether the relevant asset is taxable Australian property. The following assets are taxable Australian property: (1) taxable Australian real property (2) an indirect interest in Australian real property (3) a business asset of a permanent establishment in Australia (4) an option or right to acquire any of the CGT assets in items 1 to 3, or (5) a CGT asset that is deemed to be Australian taxable property where a taxpayer, on ceasing to be an Australian resident, makes an election under section 104-165 of the ITAA 1997. If the asset is not taxable Australian property, then there are no CGT consequences when a CGT event (such as sale of the asset) happens to that asset. In your case, you are non-residents of Australia. You purchased gold and silver bullion. You intend to sell the bullion. Bullion does not meet the definition of 'taxable Australian property'. Therefore, there are no CGT consequences for you when you sell the bullion.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.