CGT MARRIAGE BREAKDOWN ROLL-OVER: THE SANDINI CASE REVISTED

A recent case before the Full Federal Court has tested the limits of the CGT marriage breakdown rollover relief. In Ellison & Anor v Sandini Pty Ltd & Ors; FC of T v Sandini Pty Ltd & Ors [2018] FCAFC 44, the court held that the CGT marriage breakdown rollover relief (CGT rollover) cannot apply where CGT assets are transferred to a discretionary trust. For CGT rollover to apply, the CGT assets must go to the spouse or former spouse personally.

The court, which overturned the decision of the single judge in the lower court (Sandini Pty Ltd & Ors v FC of T & Ors [2017] FCA 297), also made a number of interesting observations regarding the application of CGT event A1.

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ANDREW HENSHAW

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Andrew leads Velocity Legal’s Sydney practice.

If you are in a fight with the ATO or looking to restructure your business, you should have Andrew in your corner. Andrew is passionate about getting wins for his clients, solving difficult legal issues, and giving his clients clear and confident guidance. Andrew is a Chartered Tax Advisor, holds a Masters of Law from the University of Melbourne and is the author of ‘Life, Death and Taxes’. Andrew is also a passionate snowboarder and is always up for the next adventure in life.

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