Private ruling: Capital gains tax: transfer of shares: deceased estate
Date of advice: 16 April 2019
Published: June 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Will any capital gain which may arise to the estate be disregarded upon transfer of the shares to the testamentary trusts? | A1: Yes. The Commissioner considers that if any capital gain arises to the estate, it is disregarded by the operation of Division 128 of the Income Tax Assessment Act 1997.

Relevant facts and circumstances: The deceased owned shares in several companies. The will of the deceased leaves the residuary estate to two separate testamentary trusts. The above shares form part of the residuary estate. Each of the shares will be split into two shares and transferred equally to the testamentary trusts.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-55 | Income Tax Assessment Act 1997 section 120-20 | Income Tax Assessment Act 1997 section 128-10