Private ruling: Capital gains tax
Date of advice: 7 May 2024
Published: 17 June 2024
Ruling period: Year ending 30 June 2024 | Year ending 30 June 2025
Date scheme commenced: 1 July 2023

Ruling: Q1: Will any capital gain or loss you make in relation to the disposal of your main residence situated at XXXX be exempt under the main residence capital gains tax (CGT) exemption on the basis that you satisfy the requirements of the 'Life Events Test'? | A1: Yes. The main residence exemption will apply to the sale of the property as you satisfy the requirements of the life events test. Therefore, any capital gain you make on the sale of the XXXX property will be disregarded.

Relevant facts and circumstances: You and your former spouse are Australian citizens. You are currently a non-resident of Australia for tax purposes. You have been a non-resident of Australia for less than XX years. Your former spouse is a resident of Australia for tax purposes and resides in Australia. You and your former spouse jointly own a property. You and your former spouse acquired the property a number of years ago. The property was your main residence from the purchase date to the time you relocated overseas. The property has always been the main residence of your former spouse and they continue to occupy the property as their main residence. You have not acquired a new property as your main residence. You and your former spouse have legally separated and entered a binding financial agreement. Under the financial agreement, it is specified that the property is to be sold at the earliest possible date. Your neighbour has agreed to purchase the property from you and your former spouse. Your solicitor is currently drafting the sales contract for the property. The property will settle less than XX years after you moved out of the property and relocated overseas.

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