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, including: you are a CGT small business entity; or you satisfy the …

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

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 article here.  Passive assets  One of the basic conditions …

SBCGT: Passively active or actively passive? Read More »

Introduction One of the key basic conditions to access the small business CGT (SBCGT) concessions is that the relevant CGT asset subject to the particular CGT event (generally CGT event A1 on disposal) satisfies the active asset test. What is the active asset test?                                                                                                                                                   The active asset test requires that the relevant CGT asset was …

SBCGT: What is an active asset? Read More »

Introduction Companies, like other entities, are able to access the small business CGT 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 half of the capital gain is tax-free to the company (Tax-Sheltered Amount), and only the …

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

Introduction The basic conditions for small business CGT concessions (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 test. The problem Given the ‘just before’ requirement above, a difficulty …

SBCGT and discretionary trusts: Read More »