Private ruling: CGT - small business concessions
Date of advice: 25 July 2025
Published: 22 September 2025
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you qualify for the small business CGT concessions 15-year exemption under Subdivision 152-B of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes, provided that Person A does not continue working for Company A beyond a specified date. You satisfy the basic conditions and the requirements to allow you to apply the small business 15-year exemption on the sale of the business. A CGT event occurred when you disposed of your business. You have held the goodwill for over 15 years and it has been an active asset for more than 7 ½ years. Person A was a significant individual for more than 15 years and was also a significant individual just prior to the CGT event. Person A was at least 55 years old at the time of the CGT event which happened in connection with their retirement, as Person A's responsibilities significantly change upon sale of the business and their continued service until a specified date was stipulated in the contract of sale.

Relevant facts and circumstances: Company A (you) provided us with details on incorporation date, business commence date and business trading name. Person A has been your sole director since incorporation. You have provided details for your shareholders since incorporation. Your aggregate turnover is less than $2 million. Your net assets are under $6 million. You entered into a sales agreement with Company B to sell your business. You provided us with details on the sale of the business and provided us with a copy of the sales agreement. The sale of the business included your client list along with plant and equipment. You will receive payments for the sale of your business over a two-year period. It will be made over 3 instalments, with the first payment being made at settlement. Person A accepted a full-time position with Company B on a full-time basis until a specified date as per the sales agreement. Person A works for Company A Monday to Friday 9am to 5pm. Person A has no intention to extend their employment with Company B after the specified date agreed in the sales agreement. Person A has ceased financial responsibility of the business when you disposed of the business. Person A's new role as employee is solely to support the new owner during the handover process. At the time of the CGT event Person A was over 55 years old. Person A does not own any other businesses of the same type, or any other businesses.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-A | Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 subsection152-10(1) | Income Tax Assessment Act 1997 paragraph 152-10(1)(d) | Income Tax Assessment Act 1997 section152-15 | Income Tax Assessment Act 1997 section152-35 | Income Tax Assessment Act 1997 subsection152-35(1) | Income Tax Assessment Act 1997 subsection152-35(2) | Income Tax Assessment Act 1997 paragraph152-40(1)(a) | Income Tax Assessment Act 1997 paragraph152-40(1)(b) | Income Tax Assessment Act 1997 section152-105 | Income Tax Assessment Act 1997 section 152-110 | Income Tax Assessment Act 1997 paragraph152-110 (1)(a) | Income Tax Assessment Act 1997 paragraph152-110(1)(c) | Income Tax Assessment Act 1997 paragraph152-110(1)(d) | Income Tax Assessment Act 1997 section 328-110