Small Business Capital Gains Tax (CGT) Concessions
There are four CGT concessions which are potentially available on disposal of a qualifying small business asset:
a) 15 year Exemption
b) 50% Active Asset Reduction
c) Up to $500,000 Retirement exemption
d) Small Business Roll-Over relief
What entity is disposing of the asset?
The concessions apply to disregard, reduce or defer a capital gain made by an entity where the relevant conditions are met. The entity may be any of the following:
- Individual
- Partnership
- Company
- Trust
Basic Conditions
The basic conditions that are required to be satisfied are:
- The turnover or maximum net asset value test
- Active Asset Test
- Additional conditions where the asset is a share in a company or interest in a trust
Source: Australian Taxation Office (ATO)
Small Business Capital Gains Tax (CGT) Concessions is a highy technical and complex area of advice. If you want to do a preliminary assessment on whether you qualify for any of the above concessions when disposing of your business assets:
Contact us on admin@craa.com.au to arrange for an initial consultation at a place and time convenient for you to discuss your eligibility for the small Business CGT concessions.
