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Edited version of private advice
Authorisation Number: 1052279729390
Date of advice: 23 July 2024
Ruling
Subject: CGT - small business concessions
Question
Are you permanently incapacitated for the purpose of paragraph 152-110(1)(d) of the Income Tax Assessment Act 1997 (ITAA 1997) at the time of the CGT event?
Answer
Yes, you were permanently incapacitated at the time of the CGT event. Your medical team assessed you to be unable to work since 20XX. You underwent numerous treatments but have been told by the doctor that the cancer is incurable.
This ruling applies for the following period:
Year Ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The company started a clinic in 20XX.
You are a trustee for the trust, which holds a 50% share in the company.
The trust has distributed 40% of the income of the trust for the 20XX Financial year to you and intends to distribute 40% capital of the trust to you as well.
The company sold the clinic in the 20XX financial year.
You were diagnosed with cancer in 20XX.
Your doctor upgraded your diagnosis in 20XX.
You have been unable to work since your diagnosis.
Doctors have placed you in palliative care due to your condition.
You began receiving income protection insurance from 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-110