Income tax, CGT and entities

Small business CGT concessions

The small business CGT concessions are a set of rules that can reduce or defer a capital gain made on the sale of an active business asset. Typical concessions include the 15-year exemption, the 50 per cent active asset reduction, the retirement exemption and the rollover. To use them, the business generally must meet basic conditions, such as the small business turnover or net asset test, and the asset must be an active asset, with further conditions for each concession. Some require choices to be made by the lodgment date and records to be kept. Because the conditions interact and are specific, a practice should read the ATO's guidance for the particular concession.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.