The short answer is YES if you meet certain criteria.

Small business capital gains tax concessions allow the owners of small businesses to disregard or defer some of the gains they make when selling their businesses.

The asset that is disposed of must be active and basic eligibility criteria must be met.  These are shown in Division 152 of the Income Tax Assessment Act 1997.

The four small business CGT concessions are:

1.  Small business 15 year exemption

2.  Small business 50% Active asset reduction

3.  Small business retirement exemption

4.  Small business rollover

Small business 15 year exemption.

You will not have a tax liability when you sell an active asset provide the following occurs:

1.  You are aged 55 years or older and retiring or you are permanently incapacitated; or

2.  You have owed the asset for at least 15 years.

Small business 50% active asset reduction.

You will only have a tax liability on 50% of the gain when you sell the asset.

Small business retirement exemption.

Gains from sale of an active asset are exempt from tax up to a life time limit of $500,000. If you are younger than 55 years the exempt amount from the sale must be deposited into a complying superannuation fund. 

Small business rollover

Allows you to defer all or part of the capital gain on the active asset if you buy a replacement asset or improve an existing one. 

The replacement asset can be acquired one year prior or up to 2 year after the sale in the income year which you choose the rollover.

If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au
Phone +61 3 9428 1062
Email admin@mcnamaraandco.au

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