Blog & Resources
How can I minimise my tax liability when selling my business?
You may be able to access the Capital Gains Tax (CGT) Concessions for Small Business. These concessions are detailed in Division 152 - Small business relief of Income Tax Assessment Act 1997.
There are 4 small business CGT concessions available:
1. Small Business 15 year exemption; More Information
2. Small Business 50% active asset reduction; More Information
3. Small Business retirement exemption; More Information 4. Small Business rollover To access the above concessions there are 3 basic conditions that must be satisfied:
1. The entity must be a small business entity or the entity must be a partner in a partnership that is a small business entity or the net value of assets of the entity must not exceed $6,000,000; and
2. The CGT asset to be sold must be an active asset; and
3. If the asset is held within a trust there must be a CGT concession stakeholder just prior to the CGT event, and the entity claiming the concession must be a CGT concession stakeholder in the company or trust or the CGT stakeholder must have a small business participation percentage of at least 90%. Please note that some of the concessions above have additional requirements that must also be satisfied.
For example, the 15 year exemption requires you to have held the asset for at least 15 years and you must also retire.