Small business CGT concessions
Published Date: 24 Jun 2024
The small business CGT concessions are extremely generous; however, the rules relating to them can be quite complex, and there are a lot of traps, particularly in determining whether the requirements to access the concessions are satisfied. This article will examine the basic requirements to access the small business CGT concessions and highlight the issues that relate to CGT events happening in relation to the family farm (although most of these issues are relevant to CGT events happening in relation to capital gains on other types of assets). In particular, which entities are “connected” entities and “affiliates” for the purposes of the CGT small business entity test, the $6m net asset test and the active asset test; what is “aggregated turnover” for the purpose of the CGT small business entity tests (including what income “is in” and what income “is out”); whether the land satisfies the active asset test; and the rules in relation to CGT events happening to shares or interests in trusts.
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- Published By: Linda Tapiolas CTA
- Published On:24 Jun 2024
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