Are you a Retiring Small Business Owner?

If so, you may be entitled to disregard some or all of your capital gains. To qualify, an

Individual would need to be:

    * 55 years or over and retired; or
    * Permanently incapacitated; and
    * Owned your “small business CGT assets” for 15 years or more.

If you do not qualify for this, and are making a CGT gain from the sale of your small business, you may be entitled to the following concessions:

    * 50% general CGT discount – for reducing capital gains on capital assets that have been held for 12 months or more;

    * Small business 50% active asset reduction – which reduces the capital gains on “active assets” by 50%;

    * Small business retirement exemption – which disregards any remaining capital gain by up to a lifetime limit of $500,000 per individual.

    * Small business asset rollover – which defers a capital gain where you acquire “replacement assets”.

To qualify, you must satisfy the following conditions:

    * A limit of $5 million on the net value of CGT assets owned by the small business owner and any related entities;
    * The CGT asset must be an “active asset”; and
    * If the asset is a share or interest in a trust; there has to be a “controlling individual” just before the CGT event;
and the entity claiming the concession must be a “CGT concession stakeholder” in the company or trust (i.e. a “controlling individual” and his/her spouse).

Disclaimer:

No investment advice provided to you.
This web site is not designed for the purpose of providing personal financial or investment advice. Information provided does not take into account your particular investment objectives, financial situation or investment needs.

You should assess whether the information on this web site is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of the information on this web site. You can either make this assessment yourself or seek the assistance of any adviser.