Private ruling: CGT - discount capital gains
Date of advice: 13 August 2024
Published: 23 September 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to use the CGT discount method when calculating the net capital gain for the $XX worth of shares that the estate sold on XX 20XX under subdivision 115-A of Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Based on the information provided to the Commissioner you are able to use the discount method when calculating any capital gain on the $XX worth of shares that the estate sold on XX 20XX. | Q2: Are you entitled to use the CGT discount method when calculating the net capital gain for the $XX worth of XX shares purchased on XX 20XX and sold on XX 20XX under subdivision 115-A of ITAA 1997? | A2: No. Based on the information provided to the Commissioner you cannot use the discount method when calculating any capital gain on the METCASH shares that were purchased on XX 20XX and sold on XX 20XX for $XX as they were not held for 12 months or more as per the legislation under subdivision 115-A of the ITAA 1997.

Relevant facts and circumstances: The deceased acquired all the shares after 20 September 1985. The deceased passed away on XX XXXX. In the last Will of the deceased, the children of the deceased were appointed as executors and trustees of the trust estate. On XX XXXX, the executors contacted the share broker to sell $XXXX worth of shares on the same date. It included XX codes of share. These shares were owned by the deceased for more than 12 months, except for XX units of X share which were purchased by the deceased on XX 20XX and therefore not held for more than 12 months. The settlement date for all the shares that were sold was on XX 20XX. Probate was granted on XX 20XX. The Probate was granted to the executors on XX 20XX following settlement.

Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 115 - A