Private ruling: CGT small business 15-year exemption
Date of advice: 28 May 2021
Published: September 2021
Ruling period: Income year ended 30 June 20XX
Date scheme commenced: 1 January 20XX

Ruling: Q1: Do you satisfy the conditions to apply the capital gains tax (CGT) small business 15-year exemption in section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997) to the gain made from selling your business premises? | A1: Yes. In your case, we consider that you satisfy the conditions to apply the small business 15-year exemption to the sale of your business. You were a small business entity in the income year in which the CGT event occurred, and the business premises satisfies the active asset test. You have owned the property for over 15 years and you intend to retire at the time the business is sold. The capital gain upon the sale of the property is therefore disregarded

Relevant facts and circumstances: You are a sole trader who acquired the premises from which you conducted your business over 15 years ago. Your aggregated turnover is under $200,000 per annum. You have conducted your business from those premises since acquisition. You are almost XX and intend to sell the business premises and retire upon its sale.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 section 152-105


This ruling applies for the following period