Private ruling: Capital gains tax - trust - disposal
Date of advice: 17 October 2019
Published: January 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Did you own an interest in the Property for capital gains tax (CGT) purposes? | A1: No. Based on the information provided, we view that you did not have a beneficial ownership interest in the Property and had held the interest in the Property on trust.

Relevant facts and circumstances: Your child (Person A) wished to purchase a property but did not have sufficient funds to finance the purchase of a property. You were included on the title of the property to enable Person A to obtain a loan. The Property was purchased in 19XX. You and your spouse prepared a letter shortly after your will was prepared to explain what you had included in your finalised wills. A contract for the sale of the Property was entered into in late 20XX, with settlement occurring after a number of months. Persons A have treated the property as their main residence and were responsible for all costs in relation to the Property and the receipt of all rental income during the period the Property was rented out. Persons A received all of the capital proceeds from the sale of the Property. A capital gain was made on the sale of the Property.

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