Purchase date is contract date or nomination date?

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(Dynamo)Dynamo

23 May 2024

Dear all

I have an enquiry about CGT issues.

The scenario is a person A bought a off-the-plan property for investment and signed the contract, and one year later he sold it to another person B during the construction, and settled 6 months later. Then, the property was sold 3 months later.

May I ask if the seller B is entitled CGT 50% discount?

And if the property was signed by nomination in contract, and nominated to another party when settlement, may I ask the purchase date is contract date or nomination date? If 50% discount still can apply under this situation?

Many thanks

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Bruce4Tax

(Taxicorn)Taxicorn

24 May 2024

And if the second owner should keep at least over 12 months to be entitled concession from the date of nomination date? Because the nominated second owner's name is not actually showed in initial contract.

Yes

If A bought the property, then sold to B - then A has a CGT disposal.

B cannot use A's buy date - unless B is on the original buy contract.

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Bruce4Tax

(Taxicorn)Taxicorn

24 May 2024

May I ask if the seller B is entitled CGT 50% discount?

Not on the information provided - looks like there was only 9 months between B's buy contract and sell contract.