Income tax: capital gains: is a capital gain or capital loss made from an antique car, a veteran car or a vintage car disregarded?

Yes.

Section 118-5 of the Income Tax Assessment Act 1997 states that you disregard a capital gain or capital loss you make on a car, motor cycle or similar vehicle. A car is defined to be 'a motor vehicle designed to carry a load of less than 1 tonne and fewer than 9 passengers' (subsection 995-1(1)).

A car is a CGT asset under Division 108. A car may be a collectable in terms of subsection 108-10(2) if it is an antique. A car may be a personal use asset in terms of subsection 108-20(2) if it is used or kept mainly for your (or your associate's) personal use or enjoyment. In either case, it remains a car for the purposes of section 118-5 and any capital gain or capital loss made on it is disregarded under that section.

The word 'antique' describes an object of artistic and historical significance that, when a CGT event happens to it, is of an age exceeding 100 years: see Taxation Determination TD 1999/40.

A capital gain or capital loss you make on an antique, veteran or vintage motor vehicle designed to carry a load of 1 tonne or more and 9 or more passengers is not disregarded.