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Edited version of private advice
Authorisation Number: 1051895899007
Date of advice: 4 September 2021
Ruling
Subject: CGT - small business concessions
Question
Will the CGT events happen in connection with Individual A's retirement?
Answer
Yes. The disposals of the CGT assets are integral to Individual A's retirement plans. While there is a small delay between the CGT events and Individual A ceasing all work activities there will be a significant reduction in the number of hours worked following the disposals. It is accepted that the CGT events happen in connection with retirement. Further information about whether a CGT event happens in connection with an individual's retirement can be found by searching for 'QC 52288' on ato.gov.au.
This ruling applies for the following periods
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts and circumstances
The Trust is a discretionary trust established by deed.
The appointor of the Trust is and has at all times been Individual A.
The trustee of the trust is Company A, the share capital of which is legally and beneficially owned in equal shares by Individual A and Individual B.
The trust acquired the CGT assets which form the assets of the trust more than 15 years ago.
At all times since acquisition the Trust has leased the CGT assets at market value to Individual A who is connected to the Trust.
It is proposed that the CGT assets will be disposed of by the Trust.
There will be a capital gain made on the disposal of the CGT assets.
Individual A will be a significant individual and CGT concessions stakeholder in the Trust just before the CGT events.
Individual A has carried on a business in a full-time capacity.
Individual A is employed in a number of roles and will resign from these roles over the short term.
Following the disposal of the CGT assets Individual A will cease carrying on any business.
Relevant legislative provisions
Income Tax Assessment Act 1997 paragraph 152-110(1)(d)(i)