Private ruling: CGT - beneficial ownership
Date of advice: 18 March 2021
Published: May 2021
Ruling period: Year ended 30 June 2021 | Year ended 30 June 2022
Date scheme commenced: 1 July 2020

Ruling: Q1: Will you have a Capital gains tax (CGT) event upon transfer of the legal title? | A1: No. CGT event A1 happens when you dispose of a CGT asset. The beneficial owner of the CGT asset will be liable to determine the capital gain or loss from the event. We accept the beneficial owners are different to the legal owner. Therefore, upon your transfer of the legal title there will not be a CGT event. Further information on a beneficial owner can be found inTD 2017/11 Income tax: who should be assessed to interest on bank accounts? .

Relevant facts and circumstances: You purchased a property post CGT as joint tenants. The Property was bought for the beneficial ownership of the other joint tenant. You resided at the property for a short period of time. Your joint tenant maintained the property the entire period of ownership. Your joint tenant provided the deposit to purchase the property. Your joint tenant has paid the outgoings on the property such as, maintenance, rates and mortgage repayments for the entire period of ownership. The property has never been used for income producing purposes. You will transfer the legal title to your joint tenant as the beneficial owner for no proceeds.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10