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Edited version of private advice
Authorisation Number: 1051635248744
Date of advice: 13 February 2020
Ruling
Subject: Small business CGT concessions - 15 year exemption
Question
Can you disregard the capital gain you make on the disposal of the property under the small business 15-year exemption?
Answer
Yes. You can disregard the capital gain you make on the disposal of the property as you will satisfy the basic conditions, are over 55 years old, the disposal will be in connection with your retirement and you have owned the property (an active asset) for more than 15 years. Further information can be found by searching 'QC 22165' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You are over 55 years old.
You acquired the property jointly with your spouse more than 15 years ago.
The property has been used in a partnership business carried on by you and your spouse from the time of acquisition.
The partnership is a CGT small business entity.
You will retire from all business activities when the property is sold.
You will make a capital gain on the disposal of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-A
Income Tax Assessment Act 1997 Subdivision 152-B
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-40
Income Tax Assessment Act 1997 section 152-105