Private ruling: Small business concessions
Date of advice: 20 April 2018
Published: July 2018
Ruling period: Financial year ending 30 June 2018 | Financial year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Do you qualify as a capital gains tax (CGT) small business entity for the purposes of the CGT small business concessions as per the requirements of section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes Having considered the relevant factors and the indicia of carrying on a business as per TR 2017/D7 Income tax: when does a company carry on a business within the meaning of section 23AA of the Income Tax Rates Act 1986? the Commissioner accepts that you are a CGT small business entity for the purposes of the CGT small business concessions.

Relevant facts and circumstances: You are an Australian Proprietary Limited entity. All shares on issue are ordinary shares which are owned equally by individuals who are also directors of the company. In 2002 you acquired land ('the premises') and from acquisition of the premises, you ran a business from the premises. In 2014 you sold the business but retained the premises. The premises were an active asset for more than 7.5 years. Following disposal of the business, you leased the premises out. Rent is charged at open market value. You aggregated turnover is less than $2 million. Your aggregated turnover for the prior financial year was less than $2million. You will dispose of the premises in the 2018 or 2019 financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 152-10 | Income Tax Assessment Act 1997 Section 328-110 | Income Tax Assessment Act 1997 Section 995-1