Looking to restructure?
If you are a small Business you can restructure from 1 July 2016 without attracting a capital gain tax liability.
The proposal put forward in the 2015-16 Budget has now become law. This allows small businesses to apply a CGT rollover relief for changes to their legal entity structures without concurrently attracting a capital gain tax (CGT) liability.
This provides greater flexibility for small business owners to change the legal structure of their business by allowing them to defer gains or losses that would otherwise be realised when business assets are transferred from one entity to another as part of a genuine restructure of an ongoing business.
This is in addition to CGT roll-overs and Small Business CGT Concessions currently available where an individual, trustee, or partner in a partnership transfers assets to, or creates assets in, a company or other entity in the course of restructuring their business.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.