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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051301042281

Disclaimer

You cannot rely on this edited version in your tax affairs. You can only rely on the advice that we have given to you or to someone acting on your behalf.

The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.

Date of advice: 30 October 2017

Ruling

Subject: Capital gains tax (CGT) small business concessions

Question

Are you entitled to disregard a capital gain arising from the disposal of your ownership interest in the Property to the Trust pursuant to section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

After reviewing the facts and circumstances of this particular case, we are satisfied that: the conditions in subdivision 152-A of the ITAA 1997 have been met; you continuously owned the Property for more than 15 years; and that you are over the age of 55 and have taken steps in contemplation of your retirement. Further information about the small business 15 year exemption can be found by navigating to our website ato.gov.au and entering Quick Code QC52288 into the search bar at the top right of the page.

This ruling applies for the following period:

The scheme commences on:

Relevant facts and circumstances

You were born 19XX.

You and two others purchased the Property as a partnership in 19XX and commenced a business (the Business).

In late 19XX one of the partners was bought out of the partnership.

Around 19XX you acquired full ownership of the Property and the Business.

On 19XX you sold the Business to a third party, but retained ownership of the Property.

You established a family trust (the Trust) on 20XX of which you are the sole trustee. The beneficiaries are yourself and your family members.

The Trust acquired the business from the third party in 20XX. You still retained ownership of the Property in your individual name and commenced leasing the Property to the Trust.

20XX the Trust surrendered part of the lease over the Property and you entered into a new lease with the Charity that you began.

The Trust continues to lease the balance of the Property from you.

You are connected with the Trust.

You are contemplating retirement and have begun decreasing your involvement in the business.

You are intending to sell the whole Property to the Trust which will result in a change of ownership interests.

The sum amount of:

does not exceed $6,000,000.

The annual turnover of the Business is less than $2,000,000.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 152-10.

Income Tax Assessment Act 1997 section 152-15.

Income Tax Assessment Act 1997 section 152-35.

Income Tax Assessment Act 1997 section 152-40.

Income Tax Assessment Act 1997 section 152-105.

Income Tax Assessment Act 1997 section 328-110.

Income Tax Assessment Act 1997 section 328-125.

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