Main Residence Exemption
In a recent decision, the AAT held that a taxpayer’s main residence was not entitled to the full CGT exemption on its sale because the taxpayer had not occupied it as his main residence throughout the ownership period.
Generally, if the main residence of a taxpayer was used either in full or in part for producing assessing income, the taxpayer is only entitled to a partial exemption from the CGT arising from the disposal of the dwelling.