Private ruling: Income Tax - capital gains- tax small business concessions
Date of advice: 18 May 2019
Published: July 2019
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the sale of your shares in the Company occur in connection with your retirement for the purposes of applying the small business 15 year exemption? | A1: Yes. Considering the relevant factors, particularly that the continuation of your employment with the Company will be a condition of the sale, we consider that the sale will occur in connection with your retirement. Further information can be obtained by searching QC52288 on ato.gov.au .

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You intend to sell the shares in the Company and seek to apply the small business 15 year exemption to the sale. The sale agreement will require you to continue to be employed by the Company for a period of time to assist in business continuity with key clients, suppliers and employees. Your work hours would reduce slightly and your responsibilities would be reduced significantly.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 152-105(d)