CGT Small Business Concessions: A Lifesaver for Your Small Business

CGT Small Business Concessions: A Lifesaver for Your Small Business

Capital Gains Tax (CGT) is something that every small business owner needs to be aware of. It’s a tax on the profit made from the sale of assets, such as property, shares, or a business. While this can be a significant issue for many businesses, there are CGT Small Business Concessions that can be incredibly helpful. These concessions can reduce or even completely eliminate the CGT payable. This means that businesses can keep more of their hard-earned profits from the sale of assets.

What are CGT Small Business Concessions?

CGT Small Business Concessions are a collection of tax reliefs and benefits that are available to small businesses. These concessions aim to ease the burden of CGT on small businesses. The three main concessions available are the CGT Small Business 15-Year Exemption, the CGT Small Business Retirement Exemption, and the CGT Small Business Rollover.

CGT Small Business 15-Year Exemption

The CGT Small Business 15-Year Exemption is the most significant of the three concessions. This exemption completely exempts a business owner from CGT when they sell an asset. To be eligible for this exemption, a business owner must have owned the asset for a minimum of 15 years. Additionally, the business owner must be over 55 years old and be retiring or permanently incapacitated. The asset must also have been used in the business for at least 50% of the time it has been owned.

CGT Small Business Retirement Exemption

The CGT Small Business Retirement Exemption is available to business owners who are retiring. This exemption allows the business owner to receive up to $500,000 tax-free from the sale of assets. To qualify for this exemption, the business owner must be over 55 years old and have held the asset for at least 15 years. Additionally, the asset must have been used in the business for at least 50% of the time it has been owned.

CGT Small Business Rollover

The CGT Small Business Rollover allows business owners to defer the payment of CGT when they sell an asset and use the proceeds to purchase a replacement asset. This concession can be incredibly helpful for businesses that need to sell assets to fund new ones. The business owner must use the proceeds to purchase the new asset within two years of the sale. Additionally, the new asset must be used in the business for at least 50% of the time it has been owned.

How can CGT Small Business Concessions Help Your Small Business?

CGT Small Business Concessions can be incredibly helpful for small businesses. These concessions can allow businesses to keep more of their profits when selling assets. This means that businesses can reinvest the money into their business, helping them to grow and expand. Additionally, these concessions can be incredibly helpful for business owners who are looking to retire. By reducing or eliminating the CGT payable, business owners can receive more money from the sale of assets, allowing them to retire comfortably.

Conclusion

CGT Small Business Concessions can be a lifesaver for small businesses. These concessions can reduce or even eliminate the CGT payable when selling assets, allowing businesses to keep more of their profits. By taking advantage of these concessions, small business owners can reinvest the money into their business, helping it to grow and expand. Additionally, these concessions can be helpful for business owners who are looking to retire. Overall, CGT Small Business Concessions are something that every small business owner should be aware of.