Income tax: capital gains: a taxpayer owns pre-CGT land and trees. The taxpayer sells timber according to two post-CGT contracts:[bull ] a contract for granting the purchaser of the timber the right to enter the taxpayer's property over a period of time and remove timber as and when required; and [bull ] a contract for the sale of the uncut timber. How is the sale treated for capital gains tax purposes?

TD 93/81 explains that for CGT purposes the transactions of a grant of a right to remove timber and the sale of the timber over two separate contracts together constitute the granting of a profit à prendre.

TD 93/81 is being withdrawn to form part of a consolidated Determination on the tax treatment of the grant of an easement, profit à prendre or licence over an asset.

The issue covered by TD 93/81 is now covered in Taxation Determination TD 2018/15 Income tax: capital gains: does CGT event D1 happen if a taxpayer grants an easement, profit à prendre or licence over an asset?