Private ruling: CGT - small business concessions
Date of advice: 20 September 2021
Published: November 2021
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you satisfy the basic conditions for the Small Business Concessions in section 152-10 of the Income Tax Assessment Act 1997 in relation to the sale of the property? | A1: Yes. The Commissioner has considered the facts of your case and has determined that you satisfy the Small Business Concessions in section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997). The Commissioner considers you are a small business and the active asset test is satisfied in relation to the property as the property was mainly used in the business of a connected entity.

Relevant facts and circumstances: The family trust owns property acquired in 20XX. The family trust leased the property to the investment trust to use in its business. From 20XX the trust also leased a small part of the property to a third party charging a comparatively small rent compared to the rent charged to the investment Trust. The family trust has owned the property asset for more than 15 years and was used in a business carried on by a connected entity. The family trust and the investment trust are both controlled by the same third entity. The business in the investment trust closed down prior to 30 June 20XX. The turnover in the investment trust exceeded $X million and was not a small business entity. In July 20XX, the family trust commenced a business on the said property. The aggregated turnover of the family trust is less than $X million for the 20XX income year. The family trust is a small business entity. You intend on selling the property in the 20XX or 20XX income year.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 subsection 152-35(1) | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 paragraph 152-40(4)(e) | Income Tax Assessment Act 1997 subsection 328-125(1)