EV 1052278542400currentnon-binding advice

CGT - 15 year exemption

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Are you entitled to apply the small business 15-year exemption in section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997) to disregard your share of the capital gain made on the sale of the property?

2

Yes. This ruling applies for the following period : Year ending 30 June 20YY The scheme commenced on: 1 July 20YY

3

You purchased a property over 15 years ago. You conducted a primary production business on the property through a partnership throughout the ownership period. The partnership's turnover was less than $2 million at all times. The sale of the property will result in a capital gain. You are now fully retired and will be over 55 when the property is sold.

4

Income Tax Assessment Act 1997 section 152-10 Income Tax Assessment Act 1997 section 152-35 Income Tax Assessment Act 1997 section 152-40 Income Tax Assessment Act 1997 section 152-105 Detailed reasoning Section 152-105 of the ITAA 1997 provides a small business 15-year exemption for individuals. Under this section, you can disregard the capital gain from the disposal of a CGT asset if you: (a) satisfy the basic conditions in Subdivision 152-A of the ITAA 1997 for the small business CGT concessions (b) continuously owned the CGT asset for the 15-year period ending just before the CGT event happened (c) if the CGT asset is a share in a company or an interest in a trust - the company or trust had a significant individual for a total of at least 15 years (even if