CGT Rollover Relief
Many business owners are aware of the basic commercial elements required to qualify for Small Business Capital Gain Tax relief Provisions. But there are some under-utilised opportunities and some traps to avoid...
CGT Rollover Relief
15 Year Rule
Some business owners have overlooked the 15 year opportunity. If you have had the business operating with the same ownership for 15 years this will allow a significant saving. It is a significant benefit in many deal situations and we recommend you get advice early in the process of considering a sale. There are some potential traps related to the business equity interests which must be met (don't go changing these without advice).
Pre-CGT Asset
We even have some business persons still overlooking the fact the business is a Pre-CGT asset and no CGT is payable on its sale at all! So if your business is pre-1985 you need to get your adviser to check the details!
Active Asset Rollover & Retirement Relief
These provisions and related benefits require careful consideration of your circumstances. Relevant issues are:
- The structure of the sale
- Your age
- Prior business sales
- Subsequent business plans
Tax Free Small Business Exit?
Of course you have to meet the overall $6M Net Asset Ceiling to qualify for a start, but in a range of circumstances we are seeing small business people making great capital gains with the use of the Small Business Rollover Provisions and some pre-sale planning - receiving it TAX FREE!
We provide Small Business Sale Tax Advice and Detailed Tax Estimates, as well as related sale structuring advice.