Private ruling: Small business capital gains tax (CGT) concessions
Date of advice: 4 December 2019
Published: February 2020
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 11 May 20XX

Ruling: Q1: Will the Commissioner allow further time under paragraph 103-25(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to make a choice to utilise the small business capital gains tax (CGT) concessions? | A1: Yes. The Commissioner will allow further time. It is accepted that you did not make a valid choice at the time you lodged your income tax return. Having considered your situation, it is reasonable to grant an extension of time to make a choice to utilise the small business CGT concessions.

Relevant facts and circumstances: You purchased the farming property some years ago. You sold the farming property recently. The farming property was an active asset used in the primary production business carried on by Entity A. Entity A is a connected entity. You purchased another property recently as a replacement asset. The new property was intended to be the replacement asset for your previous property and was purchased within the replacement asset period and is used in Entity A's business. You made a capital gain from the sale. The capital gain was not included in your income tax return. Your income tax return was completed without applying the small business 50% active asset reduction and small business rollover. At the time of lodging your income tax return, you and your tax agent did not consider the application of the small business CGT concessions. You subsequently received advice from a new tax agent and became aware concessions may be available in relation to the capital gain you made on the sale of the farming property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 103-25(1) | Income Tax Assessment Act 1997 Division 152