Private ruling: Capital gains tax
Published: February 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the Trustee permitted by Subdivision 115-C of the Income Tax Assessment Act 1997 (ITAA 1997) to confer specific entitlement upon Beneficiary A in respect of the capital gain referable to the sale of the Property? | A1: Yes. As the two conditions in subsection 115-228(1) of the ITAA 1997 will be satisfied, the Trustee can confer specific entitlement upon Beneficiary A in respect of the full capital gain made on the sale of the Property.

Relevant facts and circumstances: The deceased passed away on XX/XX/XXXX. Probate of the deceased's will was granted to the Trustee on XX/XX/XXXX. Under the terms of the deceased's will, their residuary estate is to be divided between certain individuals, including a 1/X th share to Beneficiary A. The Trustee has the power under the will to stream capital gains to beneficiaries for tax purposes. The deceased owned a Property. The Property was sold by the Trustee on XX/XX/XXXX resulting in a capital gain. The capital gains do not exceed Beneficiary A's 1/X th share of the residue of the estate. The Trustee is in the process of winding up the estate and will determine that Beneficiary A's share of the estate (or part of it) is referable to 100% of the capital gain from the sale of the Property. The Trustee will make a record of its determination by payment of an amount attributable to the relevant capital gain by 31 August 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 115-C