Private ruling: CGT - 15-year exemption
Date of advice: 26 September 2022
Published: December 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you meet the conditions to apply the small business 15-year exemption under section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997) to disregard the capital gain made on the disposal of the property? | A1: Yes. The basic conditions have been satisfied, you owned the property for more than 15 years and it is accepted that you have carried on a business on the property for more than X years that you have held the property. Therefore, you can choose to apply the 15-year exemption and disregard any capital gain made in relation to the disposal of the property.

Relevant facts and circumstances: You purchased a property after 20 September 1985. You obtained an Australian Business Number (ABN) for the purpose of operating a business. You sold your main residence and used the capital gain from the sale to invest in the property. You carried on a business on the property for over 15 years up to 20XX. In 20XX you ceased operating your business using the property due to physical injuries. You are over 55 years of age and have retired. You sold the property in the 20XX financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 152-A | Income Tax Assessment Act 1997 section 152-105