Private ruling: Small business CGT concessions
Date of advice: 11 February 2021
Published: April 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit to allow the small business capital gains tax concessions to be applied on the sale of the land? | A1: Yes. Having considered your circumstances and the relevant facts, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of timeto XX/XX/XXXX.

Relevant facts and circumstances: The Deceased passed away on XX/XX/XXXX. At the date of their death, the deceased owned land which was used in the carrying on of their business. As at the deceased's date of death, the aggregate turnover of the business was less than $2m and the deceased did not have any affiliates or any connected entities. The deceased would have been eligible to apply the small business 50% reduction and the small business retirement exemption to their interests in the land acquired after 20 September 1985. The deceased had not previously accessed the small business capital gains tax retirement exemption. Probate was granted on XX/XX/XXXX. Under the deceased's Will, the residual of the estate was to be divided equally between the beneficiaries. The titles of the assets were transferred to the executor. The estate was registered for GST and an ABN and the executor continued to run the business. Administration of the estate was complex as there were assets to liquidate in additional to the business operations. There were proposal sales of the land, however the sale fell through. One of the beneficiaries (Person A) expressed an interest in purchasing the land and they reached an agreement on XX/XX/XXXX, being just outside of the two-year period allowed under subsection 152-80(3) of the Income Tax Assessment Act 1997. The sale of the land was made on an arm's length basis. The estate will realise a capital gain in respect of the land sold to the beneficiary. The estate wishes to apply the small business 50% reduction and the small business retirement exemption to the extent that the deceased was able to.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A | Income Tax Assessment Act 1997 Section 152-80 | Income Tax Assessment Act 1997 Subdivision 152-C | Income Tax Assessment Act 1997 Subdivision 152-D