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Small Business Capital Gain Tax Concessions
The following four CGT concessions are available only for small
business.
1.
The small business 15-year exemption provides a total exemption
for a capital gain on a CGT asset if you have continuously owned
the asset for at least 15 years and the relevant individual is
55 or over and retiring, or is permanently incapacitated.
2.
The small business 50% active asset reduction provides a 50%
reduction of a capital gain.
3.
The small business retirement exemption provides an exemption
for capital gains up to a lifetime limit of $500,000. If the
individual is under 55 just before they make the choice, the
amount must be paid into a superannuation (or similar) fund.
4.
The small business rollover provides a deferral of all or part
of a capital gain if a replacement asset is acquired, or an
improvement is made to an existing asset by the end of two years
after the capital gain was made. However, you may make a capital
gain equal to the deferred gain if the replacement or improved
asset is disposed of or its use changes in particular ways. In
this case, the deferred capital gain is in addition to any
capital gain made when the replacement or improved asset is
disposed of.
Note that to qualify for any of the small business CGT
concessions, you must first satisfy several basic conditions:
- The maximum net asset value test;
- The active asset test; and
- If the CGT asset is a share in a company or an interest in a
trust, one of these additional basic conditions must be
satisfied just before the CGT event:
- The entity claiming the concession must be a CGT concession
stakeholder in the company or trust; or
Our dedicated team can assist you with issues relating to how
Capital Gains Tax can affect selling a business.
Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) +61 2 9223 9166 to arrange an
appointment. |
