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So far Sombrila2230 has created 9 blog entries.

SBCGT: What is the 90% test and when is it relevant?

By |2021-10-22T03:58:53+00:00October 19th, 2021|SBCGT CONCESSIONS, SBCGT CONCESSIONS ARTICLES|

SBCGT: What is the 90% test and when is it relevant? Introduction The basic conditions for small business CGT (SBCGT) relief are as follows: a CGT event happens to a CGT asset of yours; but for any SBCGT relief, the CGT event would have resulted in a gain; you satisfy one of various alternatives, [...]

SBCGT: Passively active or actively passive?

By |2021-10-22T04:10:36+00:00October 19th, 2021|SBCGT CONCESSIONS, SBCGT CONCESSIONS ARTICLES|

What is an ordinary share for ESS/ESOP purposes? Introduction The basic conditions for small business CGT (SBCGT) relief require, among other things, that the relevant CGT asset subject to a CGT event (generally CGT event A1 on disposal of the asset), is an active asset. As to what constitutes an active asset, see our [...]

SBCGT active asset reduction: getting tax sheltered amounts out of a company

By |2021-10-22T04:11:16+00:00October 19th, 2021|SBCGT CONCESSIONS, SBCGT CONCESSIONS ARTICLES|

SBCGT active asset reduction: getting tax sheltered amounts out of a company Introduction Companies, like other entities, are able to access the small business CGT (SBCGT) concessions, subject to meeting the relevant conditions. Where the basic conditions are met, a company can apply the SBCGT active asset reduction (Active Asset Reduction), meaning: the first [...]

SBCGT and discretionary trusts:

By |2021-10-22T04:08:02+00:00October 19th, 2021|SBCGT CONCESSIONS, SBCGT CONCESSIONS ARTICLES|

SBCGT and discretionary trusts: timing issues and the ‘just before’ requirement Introduction The basic conditions for small business CGT (SBCGT) relief require that certain conditions are met ‘just before’ the relevant CGT event, that is, it is a snapshot test at that time, including: the maximum net asset value test; and the significant individual [...]

What is an ordinary share for ESS/ESOP purposes?

By |2021-10-22T03:57:51+00:00October 7th, 2021|EMPLOYEE SHARE PLANS ARTICLES|

What is an ordinary share for ESS/ESOP purposes? Introduction The general tax rules relating to the taxation of an employee share scheme (ESS), or an employee share option plan (ESOP) are outlined in Division 83A of the Income Tax Assessment Act 1997 (General ESS Tax Rules). The General ESS Tax Rules are aimed at [...]

What is a premium priced option plan and when are they useful?

By |2021-10-22T03:55:24+00:00October 7th, 2021|EMPLOYEE SHARE PLANS ARTICLES|

What is a premium priced option plan and when are they useful? Introduction A premium priced option plan (PPOP) is not a legislative term, rather, it is a term used to describe an employee share option plan where the exercise price of the options is sufficiently above the market value of the underlying shares [...]

Founder option plans

By |2021-10-07T03:02:19+00:00October 7th, 2021|EMPLOYEE SHARE PLANS ARTICLES|

Founder option plans Introduction How many times have you heard horror stories of non-contributing or under-contributing founders (Non-Performing Founder) retaining a large equity stake in the company? Equally common are the stories of ‘simple’ fixes in the form of agreements to either: transfer the Non-Performing Founder’s shares (or a portion of them) at a [...]

ESS/ESOPs and the general 50% CGT discount

By |2021-10-22T03:56:52+00:00October 7th, 2021|EMPLOYEE SHARE PLANS ARTICLES, Uncategorized|

ESS/ESOPs and the general 50% CGT discount Introduction The general tax rules relating to the taxation of an employee share scheme (ESS), or an employee share option plan (ESOP) are outlined in Division 83A of the Income Tax Assessment Act 1997 (General ESS Tax Rules). The General ESS Tax Rules are aimed at taxing [...]

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