Private ruling: CGT – main residence exemption
Date of advice: 23 January 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you assessable on any Capital Gain made on the sale of the property? | A1: No When considering the disposal of a CGT asset, the most important element in the application of the CGT provisions is ownership. It must be determined who is the legal owner of the property. In absence to the contrary, the property is considered to be owned by person(s) registered on the title. It is possible for legal ownership to differ from beneficial ownership. However where beneficial ownership and legal ownership of an asset are not the same, there must be evidence that the legal owner holds the property in trust for the beneficial owner. Having considered the relevant factors and evidence provided, the Commissioner accepts that Couple B are the beneficial owners of the property with equitable and legal interest. As such, you are not assessable for any Capital Gain made on the sale of the property.

Relevant facts and circumstances: The property was purchased by you (title holders). Couple B could not obtain finance to purchase the property. You (title holders) agreed to get a loan in your name to purchase the property. The title deeds are in your name as required by the bank. Couple B’s names were never on the title deed. There was a written agreement between the parents and the title holders The title was never transferred into couple B’s name. They paid all ongoing costs, including mortgage repayments. They paid for renovations, repairs and improvements to the property. They received the money upon settlement of the property.

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