Private ruling: CGT - in connection with retirement
Date of advice: 6 February 2023
Published: 27 March 2023
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the disposal of the commercial premises in connection with retirement, under subparagraph 152-105(d)(i) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. We consider that the sale of the premises will be in connection with your retirement. Having considered the circumstances we accept that subparagraph 152-105(d)(i) of the ITAA 1997 will be satisfied given you will cease working.

Relevant facts and circumstances: Two taxpayers, aged over 55, were partners in partnership (the Partnership). Over 15 years ago the partnership purchased a commercial premises which was used exclusively to operate a business. The Partnership operated the business for 6 years before selling the business to an external unrelated party. In 20XX the partners commenced a joint partnership with the existing business owners. The commercial premises is intended to be transferred to the partners self-managed super fund in the 20XX income year. The business will continue to operate but the partners will cease their activities. The taxpayers intend to retire. Turnover for the joint partnership is under $X million.

Relevant legislative provisions: Income Tax Assessment Act 1997 subparagraph 152-105(d)(i)