Published on 24 May 07
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
This paper outlines the new small business CGT concessions, in particular:
- what has changed post 1 July 2006?
- are the concessions now better than before?
- what shortcomings still exist in relation to the concessions?
- what are the benefits of the significant individual test?
- how many can access the concessions?
- what are the additional conditions to be satisfied where an interposed entity sells shares in a subsidiary?
- how do you manage the 90% test?
- are the changes in the Exposure Draft going to impact these changes?
- the manner in which the changes interact with the existing rules and identify intended and perhaps unintended costs and benefits
- how the change to the definition of active asset impacts the future sale of assets used in past businesses
- how the changes impact the application of the maximum net asset value test and the concept of the connected entity
- the complications that arise for structures that have a discretionary trust
- the impact for partnerships.