Private ruling: CGT - Small business concessions
Published: May 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 01 July 2012

Ruling: Q1: Can you claim the 15 year Capital Gains Tax (CGT) exemption on any capital gain received from the sale of your commercial property? | A1: Yes

Relevant facts and circumstances: You and your partner purchased a commercial property and business. After a number of years carrying out business activities in the commercial property you sold the business. You retained ownership of the commercial property and are still currently leasing it to the new owners. You satisfy the basic conditions for small business relief. You want to sell the property in connection with your retirement.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A, | Income Tax Assessment Act 1997 section 152-10, and | Income Tax Assessment Act 1997 section 152-105.

Reasons for decision: Summary: The small business 15-year exemption provides a total exemption for a capital gain on a CGT asset if: · The basic conditions for relief under Subdivision 152-A of the Income Tax Assessment Act 1997 are satisfied for the gain, · You have continuously owned the asset for at least 15 years, and · You are 55 or older at the time of the event and the event happens in connection with your retirement. In your case it is accepted that you meet the requirements for the small business 15-year exemption. Therefore any capital gain that you make in relation to the disposal of your commercial property is disregarded.

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