Small Business CGT Concessions: Unlocking the Optimal Tax Outcome

Which of the four small business CGT concessions should you apply to get the best result? How can you combine the concessions with the general 50% discount? Plus, learn about any additional conditions you will need to satisfy for certain concessions to apply.

In this session, we cover:

• Brief recap of eligibility rules

  • Eligibility conditions

  • Additional requirements

  • Rules applicable when an entity sells an asset

  • CGT concession stakeholder

• Small Business CGT Concessions

  • Interaction of concessions

  • Calculation of capital gain

  • Applying the concessions

  • Planning considerations

• 15-year exemption

  • Individuals claiming exemption

  • 15 year continuous period

  • Shares or trust interests

  • “Retirement”

  • Permanent incapacity

  • Company and trust exemption

• 50% active asset reduction

  • Grossing up the gain

  • Clawback of exemption

• Retirement exemption

  • Individuals claiming exemption

  • Company and trust exemption

• Small business rollover (replacement asset)

  • Eligibility

  • CGT events J5 and J6 – gain reinstated

  • CGT event J2 – change in status of asset

Date recorded: 26 November 2024