Private ruling: Capital gains tax (CGT) small business concessions
Date of advice: 30 October 2017
Published: March 2018
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to disregard a capital gain arising from the disposal of your ownership interest in the Property to the Trust pursuant to section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. After reviewing the facts and circumstances of this particular case, we are satisfied that: the conditions in subdivision 152-A of the ITAA 1997 have been met; you continuously owned the Property for more than 15 years; and that you are over the age of 55 and have taken steps in contemplation of your retirement. Further information about the small business 15 year exemption can be found by navigating to our website ato.gov.au and entering Quick Code QC52288 into the search bar at the top right of the page.

Relevant facts and circumstances: You were born 19XX. You and two others purchased the Property as a partnership in 19XX and commenced a business (the Business). In late 19XX one of the partners was bought out of the partnership. Around 19XX you acquired full ownership of the Property and the Business. On 19XX you sold the Business to a third party, but retained ownership of the Property. You established a family trust (the Trust) on 20XX of which you are the sole trustee. The beneficiaries are yourself and your family members. The Trust acquired the business from the third party in 20XX. You still retained ownership of the Property in your individual name and commenced leasing the Property to the Trust. 20XX the Trust surrendered part of the lease over the Property and you entered into a new lease with the Charity that you began. The Trust continues to lease the balance of the Property from you. You are connected with the Trust. You are contemplating retirement and have begun decreasing your involvement in the business. You are intending to sell the whole Property to the Trust which will result in a change of ownership interests. The sum amount of: ● the net value of the CGT assets you own; ● the net value of the CGT assets of any entities connected with you; and ● the net value of the CGT assets of any affiliates of yours or entities connected with your affiliates; does not exceed $6,000,000. The annual turnover of the Business is less than $2,000,000.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10. | Income Tax Assessment Act 1997 section 152-15. | Income Tax Assessment Act 1997 section 152-35. | Income Tax Assessment Act 1997 section 152-40. | Income Tax Assessment Act 1997 section 152-105. | Income Tax Assessment Act 1997 section 328-110. | Income Tax Assessment Act 1997 section 328-125.


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