Private ruling: Capital gains tax (CGT) and the main residence exemption
Date of advice: 20 November 2018
Published: February 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the trustee of a special disability trust entitled to the main residence exemption in Subdivision 118-B of the Income Tax Assessment Act 1997 (ITAA 1997) for a property that was the main residence of the Principal Beneficiary? | A1: Yes. Having considered the facts, circumstances and the relevant factors, the trustee is entitled to treat the property in the manner that the Principal Beneficiary would have. More information about special disability trusts and the main residence exemption can be found by searching for “QC55220” on ato.gov.au

Relevant facts and circumstances: The Trust was created. The Trust is a special disability trust established for the purpose of providing accommodation and ongoing care of the Principal Beneficiary. The Trust was gifted the Property. The Property was the main residence of the Principal Beneficiary and their primary carer until 20XX, when the Principal Beneficiary moved into other accommodation. After this time, the Property remained vacant. A contract for sale was entered into and the Trustees sold the Property on 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-218