CGT: consequences of creating life and remainder interests
Tue Dec 12 2006
Weekly Tax Bulletin --- Page: 2019-2021 : 1 December 2006 Original article by Kirk Wilson
ABIX Summary
The Australian Taxation Office (ATO) issued Taxation Ruling TR 2006/14 on 29 November 2006. The document, which had previously been issued in draft format as Draft TR 2005 D14 and which is similar to the draft version in terms of substance, concerns the capital gains tax (CGT) consequences of creating life and remainder interests in property. It notes the CGT consequences will depend on whether the life and remainder interests have been created inter vivos or under a will, or if they are equitable or legal. Taxation Ruling TR 2006/14 replaces Taxation Determination TD 93/35.
