Private ruling: Capital gains tax - life interest
Date of advice: 22 January 2021
Published: March 2021
Ruling period: Year ending 30 June 2021 | Year ending 30 June 2022
Date scheme commenced: 1 July 2020

Ruling: Q1: Was the Property acquired by Person A before 20 September 1985? | A1: Yes. Person A acquired their ownership interest in the Property before 20 September 1985, upon the death of Person B, having been granted a remainder interest in the Property pursuant to Person B's Will. The subsequent transfer of the legal title for the Property upon the death of the life tenant, Person C, does not affect the time of acquisition.

Relevant facts and circumstances: Person A was the owner of the Property. Person A's parent, Person B previously acquired the Property prior to 20 September 1985. Person B died prior to 20 September 1985. Person B had executed a Will and the Property formed part of the Estate. Person B's Will provided that Person C be granted a life interest in the Property. Person C was granted the remainder interest in the Property. Person C died after 20 September 1985. In accordance with Person A's Will, the legal title of the Property was transferred to Person A.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 109-5 | Income Tax Assessment Act 1997 paragraph 104-10(5)(a)