Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 17/18)
Character Range: 2841019–2843700

152‑49  Businesses that are winding up
 (1) This section applies to an entity in an income year (the CGT event year) if:
 (a) a *business that the entity previously carried on (including in partnership) is being wound up in that year; and
 (b) either:
 (i) the asset was used, or held ready for use, in the course of carrying on the business at a time in the income year in which the business stopped being carried on; or
 (ii) if the asset is an intangible asset—the asset was inherently connected with the business that was carried on at a time in the income year in which the business stopped being carried on.
 (2) For the purposes of paragraphs 152‑40(1)(a) and (b) as they apply for the purposes of paragraphs 152‑10(1A)(d) and (1B)(e):
 (a) the entity is taken to carry on the *business at a time in the CGT event year; and
 (b) either:
 (i) the *CGT asset is taken to be used, or held ready for use, in the course of carrying on the business at that time; or
 (ii) if the asset is an intangible asset—the CGT asset is taken to be inherently connected with the business at that time.
Note: The entity might also be taken to be a small business entity in the CGT event year (see subsection 328‑110(5)).

Significant individual test

152‑50  Significant individual test
  An entity satisfies the significant individual test if the entity had at least one *significant individual just before the *CGT event.

152‑55  Meaning of significant individual
  An individual is a significant individual in a company or a trust at a time if, at that time, the individual has a *small business participation percentage in the company or trust of at least 20%.

CGT concession stakeholder

152‑60  Meaning of CGT concession stakeholder
  An individual is a CGT concession stakeholder of a company or trust at a time if the individual is:
 (a) a *significant individual in the company or trust; or
 (b) a spouse of a significant individual in the company or trust, if the spouse has a *small business participation percentage in the company or trust at that time that is greater than zero.

Small business participation percentage

152‑65  Small business participation percentage
  An entity's small business participation percentage in another entity at a time is the percentage that is the sum of:
 (a) the entity's *direct small business participation percentage in the other entity at that time; and
 (b) the entity's *indirect small business participation percentage in the other entity at that time.

152‑70  Direct small business participation percentage
 (1) An entity holds a direct small business participation percentage at the relevant time in an entity equal to the percentage