Private ruling: The capital gains tax (CGT) small business concessions
Date of advice: 24 October 2018
Published: January 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is internally generated goodwill included in the market value of active assets for the purposes of basic conditions of the small business CGT concessions? | A1: Yes. Goodwill is an intangible CGT asset that is inherently connected to the business that generates it. The market value of the goodwill is included in the test to determine if the shares are also active assets. Further information can be found by searching 'QC 52272' on ato.gov.au

Relevant facts and circumstances: You hold shares in a Company which carries on a business. You will sell the shares and make a capital gain. Part of the valuation of the active assets of the Company will be an amount allocated to goodwill.

Relevant legislative provisions: Income Tax Assessment Act 1997 paragraph 152-40(1)(b) | Income Tax Assessment Act 1997 subsection 152-40(3)