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Edited version of private advice
Authorisation Number: 1052069122443
Date of advice: 22 December 2022
Ruling
Subject: Capital gains tax
Question
Is there any taxable capital gains resulting from the disposal of your workshop or land?
Answer
No, you do not have to pay any tax on the sale of your workshop or land as there is no taxable capital gain. You satisfy the basic conditions to access small business relief, and you satisfy the eligibility conditions to apply the "small business 15-year exemption", meaning your capital gain from the sale of your workshop is not taxed and is disregarded for tax purposes. These rules are designed to assist small business owners and operators, and to provide relief from income tax and capital gains tax when you sell assets used in your business.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were a small business owner with a turnover of less than $2 million.
You purchased a workshop and land post-CGT. You used the workshop and land in your small business continuously, for more than 15 years, until you sold the workshop and land. You received the final instalment of payments for the workshop in July 20XX.
You were over 55 years of age when you sold your workshop and land and reduced your working hours. You also changed the nature and premises of some of your work activities.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 152-A
Income Tax Assessment Act 1997 Subdivision 152-B