CGT on Property owned by family

Hi all,

Does anyone know the situation regarding the paying of CGT on a property owned by a number of different family members?

The property was owned by 4 family members & the property was the PPOR for 3 of those 4 family members on a continuous basis prior to being sold.

Is CGT payable for any or all involved?

 

Each person's interest is treated separately. It is as if they each owned one property. Each person's share could potentially qualify for the main residence exemption if they meet the requirements.

assuming no trust relationships - which there might be.

 

For the owner who does not hold the property as a main residence at the date of sale consider the 6 year rule if it ever was their residence.

Also the ownership costs might become part of the cost base and reduce the cgt on sale as well.

 

CGT applies to a ownership interest - Not the asset itself as such.

If one owner sells, gifts or otherwise disposes of their share it may have implications for them, not the other owners. Each owner must individually (and also collectively) determine the entitlements to the main residence concessions. If any of them have a partner then their property ownership will ALSO affect this issue. It can get complex. The main residence concessions isn't as automatic as many consider.