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Edited version of private advice
Authorisation Number: 1052402226320
Date of advice: 09 June 2025
Ruling
Subject: CGT - small business concessions
Question 1
Are you eligible for the CGT small business retirement exemption under section 152-305 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 1
Yes. You satisfy the requirements under section 152-305 and subsection 152-10(1) of the ITAA 1997, therefore you can choose to disregard all, or part of the capital gain made on the sale of the Property up to the lifetime limit of $XX.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
Trust A is a Unit Trust wholly owned by Trust B. Your trustee is Company A and your beneficiary is Trust B.
Person A is the sole director and shareholder of Company A.
Person A has been the trustee and primary beneficiary of Trust B for the entire period.
Person A's spouse Person B has received 100% of the distributions from Trust B.
Trust A purchased a commercial property. You provided us with the location, purchase price and date of purchase of the Property.
The Property has been used solely by Person A to conduct business as a sole trader throughout the entire ownership period.
Trust A leased the property to Person A at a commercial rental rate.
The aggregated turnover of Person A's business is less than $2 million in the relevant financial year.
The net asset value of yours and entities that are connected with you is less than $6 million.
Your intention is to sell the property during the 20XX-XX financial year.
Person A will be over 55 when the property is sold and the sale of the property is in connection with Person A's retirement.
Assumption
You are not eligible for the 15 year exemption under section 152-110 of the ITAA 1997.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-A
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-15
Income Tax Assessment Act 1997 section 152-40
Income Tax Assessment Act 1997 section 152-110
Income Tax Assessment Act 1997 section 152-305
Income Tax Assessment Act 1997 section 152-325
Income Tax Assessment Act 1997 section 328-110
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