A SME is a Small or Medium Enterprise (business)!
The CAPITAL GAINS TAX concessions on selling a business or business asset for an SME owner are compelling!
They include:
– The 50% general CGT Discount for owning an asset for more than a year
– The 50% active asset reduction
– The CGT Retirement Exemption (you don’t have to retire)
– The 15 year exemption
A quick example:
Jo is 55 years old and has run her design business for just over 15 years with setup costs of $10,000 and has just sold it for $4,010,000; this equates to a capital gain on sale of $4,000,000 (4 Million).
Jo will not pay any tax on the sale of the business; the whole gain is exempt from tax under the 15-year exemption for small business capital gains.
These concessions are complicated! They are available for all taxpayers who own a business, have equity in a small business and/or small business assets and we can make sure you get the most from them!
Note: to qualify for these concessions there are conditions; turnover is less than $2m or net assets of the taxpayers are less than $6m and the asset is an active asset. The small business concessions are complex.