Private ruling: CGT - main residence exemption
Date of advice: 20 December 2021
Published: March 2022
Ruling period: Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a full main residence exemption on the sale of the Property? | A1: Yes. We accept that the beneficial owner of the Property is different to the legal owners, with you being the beneficial owner since the Property was purchased in accordance with the principles contained in Taxation Determination TD 2017/11 Income tax: who should be assessed to interest on bank accounts? . You as the beneficial owner of the Property are liable for any capital gains tax (CGT) in the disposal of the Property when CGT A1 occurred. However, as the Property will be your main residence for the whole of your ownership period, you will be eligible for a full main residence exemption and can disregard any capital gain or capital loss made on the disposal of the Property.

Relevant facts and circumstances: You purchased the property from your parent's estate. You had resided at the property prior to and after your parent passing away. The title of the property was transferred into your children's names under the arrangement that they would transfer the property into your name, or into another party's name, at your direction. Your children have not resided at the property, residing overseas since you purchased the property. You paid for the stamp duty on the acquisition of the property from your parent's estate and have been solely responsible for all rates, costs, fees and charges arising in relation to the property since it was purchased. A contract of sale for the property has been entered into under which the settlement date is due to occur during the ruling period, and which contains provisions to enable you to lease the property until the following income year after the settlement date. You have continued to reside at the property after the contract of sale was entered into and will continue to reside at the property until the settlement date, with the option to stay there longer.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Section 118-110 | Income Tax Assessment Act 1997 Section 118-130