EV 1052235139276currentnon-binding advice

Capital gains tax

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.

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1 Will there be a CGT event in relation to the 50% interest in the XX shares that you continue to own after the transfer into joint holding?

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No. Question 2 Will there be a CGT event in relation to the 50% interest in the XX shares that your spouse owns after the transfer into joint holdings? Answer Yes. This ruling applies for the following periods: Year ending 30 June 20XX The scheme commenced on: X XX 20XX

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You purchased XX XX shares between XX 20XX to XX 20XX. The cost base of your XX shares is $XX You transferred the above shares into your joint holding with your spouse on X XX 20XX. The transfer was done by your stockbroker. The transfer was at $XX per share (closing value) being $XX.

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Income tax Assessment Act 1997 section 104-10 Income tax Assessment Act 1997 section 106-5 Income tax Assessment Act 1997 section 108-7 IssueCapital Gains Tax Question 1 Summary There has not been a CGT event happen in relation to the 50% interest in the XX shares that you continue to own after the transfer into joint holding. Detailed reasoning Section 104-10 of the Income Tax Assessment Act 1997 (ITAA 1997) Disposal of a CGT asset: CGT event A1 explains a CGT event A1 only happens if you dispose of a CGT asset. 'Disposal' is defined for CGT purposes to mean only those situations where there is a change of ownership of the asset from you to another entity. Disposal can refer to part of a larger asset such as an interest in it. Sections 108-7 ITAA 1997 - Interest in CGT assets as joint ten