Private ruling: CGT event - legal vs beneficial ownership
Date of advice: 8 August 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Did a capital gains tax event relevant to you occur when the property was sold? | A1: No. The Commissioner is satisfied that based on the information provided that a capital gains tax event relevant to you did not occur, as you were not the beneficial owner of the property.

Relevant facts and circumstances: Your partner purchased a property (the property) in 20XX. Your partner needed to purchase a property that was close to their work and children's school. Your partner was unable to secure the finance to purchase the property. It was decided by you and your partner that you would be joint borrower, co-mortgagor, and co-purchaser to enable approval of the finance for the property. At the time of entering into the purchase contract for the property, it was agreed between you and your partner that you were not personally acquiring any beneficial interest in the property. You continued to reside in your home until your own children finished school. In 20XX you sold your residence and moved into the property with your partner. The house was sold in 20XX. Your partner paid the entire deposit herself, and you have provided evidence of a transfer of a significant sum from your partners parents at the time at the time of the payment to assist her to afford this. Throughout the ownership period your partner was responsible for the entire mortgage and maintenance costs for the property. You did not make any financial contributions towards the loan repayments or maintenance expenses of the property.

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