Small business CGT concessions - Part 1 - Basic Rules

The small business CGT concessions are arguably some of the most generous provisions in the ITAA. The concessions are targeted to small business and consist of:

• the small business 15-year exemption;
• the small business 50 per cent reduction;
• the small business retirement exemption; and
• the small business roll-over.

Depending on which concession (or concessions) applies, a taxpayer can defer, reduce or even disregard a capital gain.

In this two-part webinar series, we will go through the core rules and then dive deeper into each of the concessions.

Part 1 | Small business CGT concessions – Basic Rules

Part 1 works through the core rules, including the:

• basic eligibility requirements, namely:
  • small business entity test;
  • maximum net asset value test; and
  • active asset test, and
  • additional conditions that must be satisfied where the relevant CGT asset is a share in a company or an interest in a trust;
• additional conditions that must be satisfied where a CGT asset is held by an interposed entity;
• special rules applicable to CGT assets that are owned by partners, or by a partnership; and
• separate eligibility criteria that may need to be satisfied in order to access the various concessions.