Private ruling: Capital gains tax – small business concessions – extension of time
Date of advice: 16 January 2018
Published: May 2018
Ruling period: 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: A1: Yes, an extension will be granted to XXXX. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 103-25(1) of the ITAA 1997 and allow an extension of time. Further information on the relevant factors and CGT concessions generally can be found on our website ato.gov.au by entering Quick Code QC22655 into the search bar at the top right of the page.

Relevant facts and circumstances: You are over 55 years of age. You made a capital gain in the 2015-16 financial year, as a result of the sale of an active asset. At the time of the CGT event, you satisfied the conditions to access the small business concessions in Division 152 of the ITAA 1997. You discussed your possible eligibility for the small business concessions with your previous accountant prior to lodging your 2015-16 return and were awaiting advice as to which of the concessions you would be eligible for. Your tax return for the 2015-16 financial year was lodged stating that you did not make any capital gains for that year. You had not made a written election to choose the retirement exemption. You also an amount to your self-managed superannuation fund and have a surplus of funds over and above this amount. At the time of lodgment you met the small business 50% active asset reduction and the small business retirement exemption. This still remains the case. Your new accountant had discovered the error and advised you. You intend to make a choice to apply the retirement exemption to the capital gain when you lodge an amendment to your tax return for the 2015-16 financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 103-25(1)


Subject: Capital gains tax – small business concessions – extension of time: Will the Commissioner allow further time as provided in paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to choose to apply the small business retirement exemption to a capital gain that arose in the financial year of 2015-16?