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Edited version of private advice
Authorisation Number: 1052107136521
Date of advice: 20 April 2023
Ruling
Subject: CGT - small business concession - active asset
Question
Does the interest in the Property that you acquired more than 15 years ago satisfy the active asset test in section 152-35 of the Income Tax Assessment Act 1997?
Answer
Yes. Your interest in the Property satisfies the active asset test as you have owned it for more than 15 years and it has been used in a business carried on by you, your affiliates or an entity connected with you for more than 7 and a half years.
This ruling applies for the following periods:
Year Ending 30 June 2023
Year Ending 30 June 2024
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
You, your spouse and Individual A entered into a contract to purchase the Property more than 15 years ago.
You and your spouse each acquired an interest in the Property, with Individual A acquiring the remaining interest.
The Property was used in a partnership business carried on by you, your spouse and Individual A for a period of time.
You decided to incorporate the business and the Property was used in the business carried on by the newly incorporated company.
You moved your business to another location and the Property was leased to an unrelated third-party.
The business was moved back to the Property after it was vacated by the unrelated third-party.
Some time after a lease was signed with another unrelated party and the business was moved to new premises.
The periods the Property has been used in business carried on by you, your affiliates and entities connected with you for more than 7 and a half years.
You and your spouse are affiliates of each other.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-35