The CGT small business concessions can significantly reduce the tax payable on the sale of a small business or its assets. In some cases, the tax liability can be reduced to nil.
The concessions can also offer opportunities for small business owners to contribute substantial amounts in to superannuation to help maximise their retirement goals.
To access the concessions, taxpayers must satisfy a number of stringent and complex requirements. These include either having net assets of less than $6m or a turnover of less than $2m. Assets and turnover of related entities and individuals may need to be included.
Saward Dawson has the expertise to advise you on the concessions and how to maximise their effectiveness. It is best to start planning to access the concessions long before you intend to sell your business. Some tests look at periods of time of many years to determine eligibility. How the sale is structured may also impact on whether the concessions are available. However, even if you have already sold your business, Saward Dawson can advise you on your eligibility and how to improve your tax outcomes.