EV 1051968281508currentnon-binding advice

CGT property - majority underlying interests

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

What are the CGT consequences for the adult grandchild 'X' who now has a greater fixed entitlement of 30%?

2

There are no CGT consequences for the adult grandchild 'X' who now has a greater fixed entitlement of 30%. This ruling applies for the following periods : 30 June 20XX 30 June 20XX 30 June 20XX The scheme commences on: 1 July 20XX

3

The deceased died in 19XX. A testamentary trust was created in 19XX which included the family home. The surviving spouse lived in the family home until 19XX. From 19XX to 19XX it was rented out as a commercial property. In 19XX, the property was demolished and several new shops were constructed. The testamentary trust had distributed fixed entitlements in accordance with the deed as follows: • Adult Child A = 25% • Adult Child B = 25% • 10 Grandchildren (now adults) = 5% each In 20XX, Adult Child A passed away, leaving their fixed entitlement to their son ('X') who was then entitled to their 25% share in accordance with the trust deed. That is, 'X' is now entitled to 30% of the income and capital of the Trust (his original 5% + parent's 25%).

4

Income Tax Assessment Act 1997 Section 149-10 Income Tax Assessment Act 1997 Section 149-15 Income Tax Assessment Act 1997 Section 149-30