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CGT small business concessions paper

Publication date: 22 Nov 08

Source: NATIONAL DIVISION, THE TAX INSTITUTE

Abstract:

This paper explores two recent rounds of amendments to the CGT small business concessions which have applied from 1 July 2006 and 1 July 2007 respectively. These amendments have fundamentally altered the way the concessions work and have consequently impacted upon structuring issues and exit strategy planning issues for clients. This paper focuses on opportunities and issues, including:

• the small business entity provisions and the benefits of carrying on a business (even in a small way)
• the maximum net asset value test and the new (narrower) definitions of "affiliate" and "connected with"
• selling shares or units and the need to carefully manage the distribution process through indirect ownership layers
• issues with active assets.

Author profile:

Richard Friend CTA
Richard runs a consulting business through Balena Tassa Pty Ltd. Richard spent most of his professional career in Brisbane in the tax practice of Andersen and then Ernst & Young. Richard has developed particular expertise in all aspects of structuring for tax, investment planning, superannuation and estate planning for SME/high net worth clients. Most of this work is done by way of consulting to, and providing training for, accountants and lawyers who operate in these areas.
Current at 17 February 2011

• Tips, tricks and traps paper - 23-October-2012
• Tips & traps with the SBE test for the CGT concessions paper - 02-March-2011
• Division 7A: The end of life as we know it paper? - 03-June-2010
• Liquidations paper - 18-May-2010
• Some of the “other” CGT concessions paper - 06-August-2009
• CGT small business concessions paper - 21-May-2009
• Investing within the SIS environment paper - 31-July-2008
• Feathering the nest – The CGT business concessions paper - 16-May-2008
• The use of unit trusts and other property strategies paper - 17-July-2007
• The new superannuation paradigm paper - 18-May-2007
• SMSFs - investing in property paper - 23-August-2006
• Using superannuation monies for geared property investments - 01-March-2006
• Family trust elections - 04-August-1998
• Family Trust Elections - Case Studies - 04-August-1998
• Capital gains tax update - 28-April-1995
• Capital gains tax update - 01-January-1993
• Capital gains tax - 01-January-1990

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Purchase individual materials from this event:

CGT and partnerships
Author(s):  Christopher KNOTT

CGT & property
Author(s):  Michelle HARTMAN

Part IVA "conquering CGT"
Author(s):  Andrew SINCLAIR

CGT small business concessions
Author(s):  Richard J FRIEND

Distributing trust assets & capital gains selected issues
Author(s):  Ron JORGENSEN

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