Your Money

Explaining the small business CGT-exempt contribution

| More

I have a small business and will be selling it over the next few years. My accountant talked about a Small Business CGT-exempt contribution, and while it sounded good, I didn’t fully understand it. Could you explain it to me?

To get the benefit of this great offering to small businesses, you have to pass a number of tests and conditions. There is a net asset test, the active asset test, which your accountant would have known you would pass. Also, you must have owned the business for at least 15 years, and you have to be retiring or permanently disabled.

If you have not reached the retirement age, the amount claimed to avoid capital gains taxed has to be housed in a super fund. At retirement, you can take it as cash or leave it in your super fund. You do have to tell your super fund that the special contribution is a CGT-exempt contribution.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, August 05, 2011

Related articles

8 steps to family financial planning

How do I get rich?- the vital question not asked

How do I get rich?...the vital question not asked

How do you win?

The vital question not asked: how do I get rich?

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300