Small Business CGT Concessions
What are the available Small Business CGT concessions?
There are currently four different ways in which small business operators can qualify for Capital Gains Tax concessions:
Small business entities and taxpayers with less than the maximum net asset value test ($6m) are eligible to apply the small business CGT concessions.
It is possible to apply more than one CGT concession and prior year capital losses, however, specific rules apply.
If the circumstances involve the death of an individual, there are special rules which apply to the deceased estate.
If the circumstances involve a marriage breakdown, there are special rules which apply automatically.
If you are unsure whether your business meets the definition of a "small business entity", or whether there may be a reason why the small business CGT concessions may not apply to you, give us a call.
CGT concessions where companies and trusts are involved
Where the taxpayer is a company or trust, the taxpayer is required to have a “significant individual”. An individual is a “significant individual” in a company or trust at a time if, at that time, the individual has a “small business participation percentage” in the company or trust of at least 20% which allows up to 5 taxpayers to benefit from the small business CGT concessions.