Private ruling: Small business CGT concessions
Date of advice: 8 November 2019
Published: January 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Do you meet the basic conditions for the small business CGT concessions upon disposal of the property? | A1: Yes. You satisfy the basic conditions for the following reasons. The property was used by your affiliate who was a small business entity. You satisfy the conditions of the active asset test as the asset has been used for at least 7.5 years in a business carried on by your affiliate and the exceptions do not apply. Further information on the basic conditions for the small business CGT concessions be found by searching Quick Code QC 52266 on ato.gov.au

Relevant facts and circumstances: You and your spouse, acquired a property (the property) on XX December 19XX as joint tenants in equal shares. The property has been used by your spouse in their business since 19XX. Your spouse carries on the business as a sole trader with an aggregated turnover of less than $2 million. You do not satisfy the maximum net asset value test. You do not carry on business. You and your spouse intend to dispose of the property, which will result in a capital gain.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-47 | Income Tax Assessment Act 1997 section 152-115 | Income Tax Assessment Act 1997 section 152-130