CGT - pre-CGT land

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.

Will land acquired prior to 20 September 1985 retain its exemption from capital gains tax (CGT) under a marriage breakdown rollover provision?

Yes. Having considered your circumstances and the relevant factors, the rollover provisions under Subdivision 126-A of the Income Tax Assessment Act 1997 (ITAA 1997) will apply. The deceased is taken to have acquired their former spouse's share in the property before 20 September 1985 and it will retain its exemption from CGT. This ruling applies for the following period : Year ended 30 June 20XX The scheme commences on: 1 July 20XX

The deceased acquired 50% joint ownership interest in the property acquired before 20 September 1985. In 19XX under the Family Court Property Settlement Deed, the ex-spouse transferred the property to the deceased in 100% ownership. The deceased passed away in 20XX. The property sold in 20XX.

Income Tax Assessment Act 1997 section 126-5 Income Tax Assessment Act 1997 section 128-10

Details

Type: EPA
Issued: 30 May 2022

Source

ATO Legal Database ↗