Private ruling: Foreign capital gain - assessable
Date of advice: 18 May 2019
Published: July 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is your share of the proceeds received for the sale of land in the UK subject to capital gains tax (CGT)? | A1: Yes, as you are a resident of Australia you are subject to CGT on your worldwide net capital gains. The tax treaty between the UK and Australia does not preclude the taxation of capital gains derived in the UK by Australia. | Q2: Are you entitled to the general discount on the capital gain, in accordance with division 115 of the Income Tax Assessment Act 1997 ? | A2: Yes.

Relevant facts and circumstances: You are a resident of Australia for income tax purposes. You are a partner in a partnership. The partnership owns property in Country A. The partnership disposed of the property. You are entitled to a portion of any net proceeds from the sale of the property. You made a capital gain.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 10-5 | Income Tax Assessment Act 1997 section 102-5 | Income Tax Assessment Act 1997 division 115 | International Tax Agreements Act 1953 section 3AAA