Private ruling: CGT - beneficial ownerships
Date of advice: 22 August 2023
Published: 3 October 2023
Ruling period: Year ended XX June 20XX
Date scheme commenced: 01 July 2022

Ruling: Q1: Did capital gains tax (CGT) event A1, or another CGT event, happen to you when the Property was disposed of? | A1: No. Based on the facts, the Commissioner accepts that in your circumstances, although your name was listed on the title, it was never intended for you to have, and you never had, any beneficial ownership in the Property. It can be reasonably concluded that at the time your ownership interest ended, that is, when the Property was sold, you did not dispose of a beneficial ownership interest. Therefore, a CGT event did not happen to you when the Property was sold.

Relevant facts and circumstances: In July 20XX, you gifted $X to a relative and their spouse to enable them to purchase a property. To safeguard those funds in the event of a breakdown in their relationship, you had your name placed on the title deed as guarantor. The Property was purchased on X August 20XX. You were deemed to have X% ownership in the Property. Your relative and their spouse placed the Property on the rental market, and it was subsequently tenanted for X days before they moved into the Property. In May 20XX, the Property was sold. You received no monetary benefit from the sale of the property. You received no monetary benefit from the rental income being produced. The gas and electricity bills were solely in the name of your relative and their spouse. You have never resided in the Property. Your name is not on the rental agreement as an 'owner' of the Property.

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