Private ruling: Capital gains tax - legal v beneficial ownership
Date of advice: 12 September 2019
Published: October 2019
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the sale of the property result in a capital gains tax event for you? | A1: No. Having considered your circumstances and the relevant factors relating to your situation the Commissioner accepts that although you were the legal owner of the property, you held no beneficial interest in the property and your parent was absolutely entitled to the property. Therefore the sale of the property will not result in a CGT event for you in relation to the disposal of the property.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Section 106-50 | Income Tax Assessment Act 1997 Section 108-5


Relevant facts: You and your parent took out a loan in joint names to purchase a property to assist your parent who was unable to secure a loan in their own name due to their limited income. | The property was acquired in 20xx. | You and your parent are joint owners of the property (The property) | The property was always used by your parent as their main residence. | You have never considered the property as belonging to you and have not contributed financially other than being included on the mortgage documentation. | Your parent paid all the expenses including the stamp duty, loan repayments and utility expenses during the entire ownership period. | Your parent sold the property in 20xx. | You did not receive any of the proceeds from the sale of the property.