Private ruling: Children's shares
Date of advice: 9 August 2021
Published: October 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Did you own the shares for CGT purposes just before the off-market transfer? | A1: No. It is accepted that you were not the beneficial owner of the shares and you meet the requirements detailed in Taxation Determination TD 2017/11 (which is about interest income in a bank account). Further information about Children's share investments can be found by searching 'QC 16210' on ato.gov.au


Relevant legislative provisions: Income Tax Assessment Act 1997 section 106-50


Relevant facts: You set up a share bare trust known as person A <ATF person B (your child) when they were a minor. | The account was established with a financial institution on about 20XX. | The stocks transferred in were stock A, stock B and stock C. | Two parcels (stock A & stock B) were then sold and the funds were consolidated into stock C. around 20XX. | You purchased on your child's behalf further small holdings of shares in 20xx and another small parcel on 20XX. | All purchases of the shares were made with my child's birthday, Christmas and gift money. | Since establishment all dividends have been reinvested. | You were assessed on any earnings. | Your child's individual account was established recently and the Trust account was closed after a period of time. The share portfolio was transferred to your child via off-market transfer. | Your child is now the legal owner of the shares.