Private ruling: Pre-CGT assets
Date of advice: 23 September 2021
Published: November 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 19 September 19XX

Ruling: Q1: Is the sale of your XXX properties (excluding any major capital improvements made post 20 September 1985) that were acquired prior to 20 September 1985 subject to capital gains tax (CGT)? | A1: No. The sale of the original properties is not subject to CGT as it is considered to be a pre-CGT property. It has been satisfied that the pre-CGT assets have been held by the same ultimate owners at all times from immediately before 20 September 19685 to the disposal of the asset. Any major capital improvements made to the properties post 20 September 1985 are considered separate assets and may be subject to CGT.

Relevant facts and circumstances: You purchased XXX residential properties prior to 20 September 1985. The shareholders of the company prior to 20 September 1985 were Person 1, Person 2 & Person 3. Person 3 passed away on XX XXX 19XX and their shares were transferred to Person 4. An additional XXX ordinary shares were issued on X XXX 19XX to Person 1, Person 2 & Person 4. All XXX properties were sold during the 20XX financial year. One property had capital improvements of $XXX,XXX completed during the 20XX financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 149


This ruling applies for the following period: