Private ruling: Trust capital distribution
Date of advice: 16 November 2018
Published: March 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Is the capital distribution from the Family Trust following the sale of the pre-capital gains tax property included in your assessable income? | A1: No. Having considered the facts and circumstances, the Commissioner considers that the capital distribution from the Trust is not included in your assessable income as per paragraph 99B(2)(a) of the Income Tax Assessment Act 1936 . The relevant assets have not stopped being pre-CGT assets under Division 149 of the Income Tax Assessment Act 1997 and as outlined in Taxation Ruling IT 2340: Income tax : capital gains : deemed acquisition of assets by a taxpayer after 19 September 1985 where a change occurs in the underlying ownership of assets acquired by the taxpayer on or before that date as the majority underlying interests in the assets have not changed.

Relevant facts and circumstances: The Family Trust has sold property which was acquired prior to September 1985. On the completion of the final sale, the Family Trust will have cash. The Trustee of the Family Trust wishes to wind up the Family Trust and distribute cash as a capital distribution to you as a beneficiary. You are an Australian resident. The Family Trust is a resident trust. Since the Family Trust was established, no additional beneficiaries have been appointed and no amendments to the Trust Deed have been made.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-15. | Income Tax Assessment Act 1997 Division 104. | Income Tax Assessment Act 1997 Division 149. | Income Tax Assessment Act 1936 Section 99B.