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2007-01-15
Small Business CGT Concession Changes
The small business capital gains tax concessions allow you to eliminate or reduce your small business's potential CGT in a number of ways by providing:
- a total exemption for a capital gain on an asset if you have continuously owned the eligible asset for at least 15 years and you're 55 or over and retiring.
- a 50% reduction of a capital gain on an active asset.
- a retirement exemption for capital gains up to a lifetime limit of $500,000.
- a deferral of a capital gain if you acquire an appropriate replacement asset.
The Government introduced proposed changes to improve the operation of these concessions into Parliament in December 2006. As these changes apply to eligible CGT events that happen in the 2006-2007 year, you may need to look at this area now to identify any potential tax planning opportunities.
The proposed changes will mean more individuals will be eligible for these rules which could lead to large personal tax savings. If you are considering selling your business or winding down your operations call us now.
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