Private ruling: CGT small business concessions - 15-year exemption
Date of advice: 21 November 2025
Published: 5 January 2026
Ruling period: 30 June 20XX
Date scheme commenced: 20XX

Ruling: Q1: Is the Company eligible to apply the 15-year retirement exemption in section 152-110 of the Income Tax Assessment Act 1997 (ITAA 1997) to the capital gain made on the goodwill? | A1: Yes. The Company satisfies the basic conditions under Division 152-A of the ITAA 1997. The Company continuously owned the CGT asset for over 15 years and had a significant individual for more than 15 years ending just before the CGT event. At the time of the sale of the business X was a significant individual, over 55 years old and the CGT event happened in connection with their retirement. Therefore, the Company is eligible to apply the small business 15-year exemption to the capital gain made on the goodwill.

Relevant facts and circumstances: The Company was incorporated in 19XX and carried on a business. Details of the shareholding in the Company over time has been provided. The current shareholder is the trustee for X Trust. The Company's aggregated turnover in the year ended 20XW was less than $2 million. On DDMM 20XX the Company sold the business which included goodwill. In the income year 20XX the trustee for X Trust distributed its income as to X% to individual A and as to X% to individual B. The percentage of distributions to the beneficiaries of X Trust for the income years 20XV to 20XX have been provided. Individual A was over 55 years old when the business was sold. Prior to the sale, Individual A was working X to X hours a week. The sale agreement identified Individual A as a key person and provides that they will be employed until a set date on significantly reduced hours. Individual A intends to cease work after that date or earlier if possible.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-110 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 section 152-55 | Income Tax Assessment Act 1997 section 152-65 | Income Tax Assessment Act 1997 section 152-75