tax implication

March 22, 2019

Tax Implications When Selling a Business

When it comes to selling a business, it’s never as simple as it seems. There are a number of factors to consider and one of the majors ones that is often overlooked is Capital Gain Tax (CGT). CGT arises when you sell or dispose of an asset that was acquired on or after 19 September 1985, minus any capital losses – and this includes businesses. Under certain circumstances, company/trust shares may be subject to CGT even if acquired before this date. Though there is good news for small business. Concessions are available for small business owners that meet certain criteria– making it possible to reduce the CGT amount. The turnover threshold for CGT concessions is $2 million. According to the ATO […]