Private ruling: Capital gains tax - Absolute Entitlement
Date of advice: 10 December 2019
Published: February 2020
Ruling period: Financial year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you have a capital gains tax event upon the sale of the Property? | A1: No. Your relative is absolutely entitled to the Property as against you as trustee. Your relative is treated as the relevant taxpayer in respect of the asset for the purposes of the capital gains tax provisions.

Relevant facts and circumstances: The Property was purchased in your name with funds belonging to your relative. You hold the Property on trust for your relative. Your relative is absolutely entitled to the Property. Your relative has resided in the Property as their main residence. Your relative has personally paid all outgoings relating to the Property. The Property will be placed on the market and sold as your relative can no longer live on their own. The capital proceeds from the sale of the Property will belong to your relative.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 106-50 | Income Tax Assessment Act 1997 Part 3-1 | Income Tax Assessment Act 1997 Part 3-3