| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051493582963
Date of advice: 20 March 2019
Ruling
Subject: Small business CGT concessions
Question
Do you meet the basic conditions for the small business CGT concessions on the sale of the property?
Answer
Yes.
You satisfy the basic conditions for the following reasons. Your CGT asset is used in a business carried on by a small business entity that is your affiliate. You satisfy the conditions of the active asset test as the asset has been used for at least 7.5 years in a business carried on by your affiliate and the exceptions do not apply. Further information on the small business concessions and passively held assets can be found by searching 'QC 44192' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You own a property.
You do not carry on a business but primary production businesses are undertaken on your property.
One is carried on by your spouse and the other is carried on by a company.
You are a shareholder of the company along with your spouse and your adult child and their spouse.
The Company pays rent which varies from year to year and may or may not amount to a market rent in any year.
There are no written leases in place.
The combined turnover of your spouse and the company is less than $2 million.
You plan to transfer your property to your adult child as part of a farm family succession plan.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 section 152-47
Income Tax Assessment Act 1997 section 328-115
Income Tax Assessment Act 1997 section 328-130