Private ruling: Transfer of CGT assets and depreciating assets to a new custodian
Published: July 2014
Ruling period: 2014 income year
Date scheme commenced: During the 2014 income year

Ruling: Q1: Will the transfer of assets by Custodian A to Custodian B (to be held by Custodian B on the terms set out in new custody agreements) give rise to any one of the following CGT events: (a) CGT event A1 (in section 104-10 of the Income Tax Assessment Act (ITAA 1997))? (b) CGT event E1 (in section 104-55 of the ITAA 1997)? (c) CGT event E2 (in section 104-60 of the ITAA 1997)? (d) CGT event E5 (in section 104-75 of the ITAA 1997)? | A1: No. | Q2: Will the transfer of assets by Custodian A to Custodian B (to be held by Custodian B on the terms set out in the same custody agreement) give rise to any one of the following CGT events: (a) CGT event A1 (in section 104-10 of the ITAA 1997)? (b) CGT event E1 (in section 104-55 of the ITAA 1997)? (c) CGT event E2 (in section 104-60 of the ITAA 1997)? (d) CGT event E5 (in section 104-75 of the ITAA 1997)? | A2: No. | Q3: Will the transfer of an asset by Custodian A to the beneficiary, and/or the subsequent transfer of that asset to Custodian B (to be held by Custodian B on the terms set out in new custody agreements), give rise to any one of the following CGT events: (a) CGT event A1 (in section 104-10 of the ITAA 1997)? (b) CGT event E1 (in section 104-55 of the ITAA 1997)? (c) CGT event E2 (in section 104-60 of the ITAA 1997)? (d) CGT event E5 (in section 104-75 of the ITAA 1997)? | A3: (a) No. | Q4: Will the transfer of depreciating assets by Custodian A to Custodian B (to be held by Custodian B on the terms set out in new custody agreements) give rise to balancing adjustment events under section 40-295 of the ITAA 1997? | A4: No. | Q5: Will the transfer of depreciating assets by Custodian A to the beneficiary, and/or the subsequent transfer of those depreciating assets to Custodian B (to be held by Custodian B on the terms set out in new custody agreements), give rise to balancing adjustment events under section 40-295 of the ITAA 1997? | A5: No.


Relevant legislative provisions: Section 40-40 of the ITAA 1997 | Section 40-295 of the ITAA 1997 | Section 104-10 of the ITAA 1997 | Section 104-55 of the ITAA 1997 | Section 104-60 of the ITAA 1997 | Section 104-75 of the ITAA 1997 | Section 106-50 of the ITAA 1997 | Subsection 960-100(2), ITAA 1997 | Section 5, Trusts Act 1973 (Qld) | Section 21, Trusts Act 1973 (Qld) | Section 31, Trusts Act 1973 (Qld) | Section 32, Trusts Act 1973 (Qld) | Section 5, Trustee Act 1958 (Vic)


Subject: Transfer of CGT assets and depreciating assets to a new custodian: In order to protect the privacy components of this private binding ruling the following summary is provided.