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Edited version of private advice
Authorisation Number: 1051530136796
Date of advice: 1 July 2019
Ruling
Subject: Small business concession - 15 Year exemption
Question
Are you eligible to apply the 15 year exemption in Subdivision 152-B of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the sale of the property?
Answer
Yes. The basic conditions in Subdivision 152-A of the ITAA 1997 are satisfied. You owned your interests in the property for more than 15 years, and were over 55 years of age at the time of the sale, and the Commissioner also considers that the CGT event has happened in connection with your retirement. Further information can be found by searching 'QC 52288' on ato.gov.au
This ruling applies for the following period
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You and your spouse are not registered with an Australian business number (ABN) nor registered for GST.
Together, you are registered as a partnership and were registered for GST for a short period of time in the past.
You are also the directors of Company A which is registered for GST. You have 50% ownership each in the Company.
You acquired, as joint tenants, a property located in town A (the Property) after XX/mth 19XX. At the time of your purchase there was an existing business (the Business) operating from the Property. You purchased the Business and the Property together. You provided the values of each of them at acquisition.
You provided details of the property.
At the time of purchase, structures on the Property included an office (without rooms or kitchen), a donga for use as a kitchen and some sheds.
Since the purchase of the Property, you have not carried out any improvements or developments on the land.
The Company continued to operate the Business you acquired. The aggregated turnover of the Business is below $X million. The Property is used in the course of carrying on the Business through the Company. You don't carry out other business activities somewhere else.
The Company did not pay any rent to you for their use of the Property however they pay the outgoings on the Property.
You currently co-own several other properties. One of them is rented out.
You have not previously owned or co-owned any other properties that have been sold.
You have listed the Property and provided details of the expected proceeds.
You are both over 55 years of age and are significantly reducing your involvement and time spent working in the business.
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 152-40
Income Tax Assessment Act 1997Section 152-105
Income Tax Assessment Act 1997Section 328-115
Income Tax Assessment Act 1997Section 328-125
Income Tax Assessment Act 1997Section 328-130