Private ruling: CGT small business concessions
Date of advice: 12 October 2021
Published: January 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX Month 20XX

Ruling: Q1: Do you satisfy the basic conditions to apply the CGT small business concessions on the sale of the properties? | A1: Yes . You had an interest in the properties either individually or jointly with a family member and it was used in the course of carrying on a business by an entity that is a connected entity to you. Further information on the basic conditions can be found by searching 'QC 22655' on ato.gov.au Further information on connected entities can be found by searching 'QC 52286' on ato.gov.au.

Relevant facts and circumstances: 'Property 1' Person A acquired X% of the property in XXXX, X% in XXXX and the remainder in XXXX. Initially the partnership was carrying on a business on the property then Person A took over carrying on a business as a sole trader from XXXX. In XXXX, Person A entered into a contract to dispose of the property. 'Property 2' Person A acquired X% of the property pre CGT. Person A acquired the remaining X% in XXXX. Initially the partnership was carrying on a business on the property then Person A took over carrying on a business as a sole trader from XXXX. In XXXX, Person A entered into a contract to dispose of the property. 'Property 3' Person A acquired X of the property and Person B acquired X of the property. They held several parcels of land on this property. A family company was carrying on a business on this property until XXXX. On XXXX the company ceased and the business was taken over by the Trust. Person B is the primary beneficiary of the Trust. Person A could also be a general beneficiary of the Trust under the Trust deed. Person B acquired another X of the property in XXXX. Person A acquired another X of the property in XXXX. If necessary the Trust will nominate Person A and Person B as controllers of the Trust for each year since XXXX. In XXXX Person A and Person B entered into a contract to dispose of X lots of the property. The Trust and Person A have an aggregated turnover of less than $2 million in the 20XX income year. "Property 4' In XXXX Person B acquired a property X%. The Trust was carrying on a business on the property since acquisition. Person B owns X% shares in the Trustee company and is the primary beneficiary of the Trust. In XXXX, Person B entered into a contract to dispose of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 section 152-78 | Income Tax Assessment Act 1997 section 328-115