The changes to the small business CGT concession provisions to limit access to those concessions in the context of share or unit sales are now law. These changes – with retrospective effect for CGT events happening after 8 February 2018 – amongst other things impose additional conditions for taxpayers realising their shares (or units) in an object company (or unit trust). These additional conditions require the object company or unit trust to itself be, in broad terms, a small business – that is, the object entity must itself be either a small business entity with aggregated turnover of <$2 million or satisfy a modified MNAVT of <$6 million. Of practical significance therefore, whereas historically shareholders and unitholders holding between 20% and 40% in an object entity could previously access the small business CGT concessions irrespective of the object entity’s size, provided the shareholder or unitholder themselves (with their own connected entities) had net assets of <$6 million, such shareholders and unitholders can no longer access the small business CGT concessions.
Further, the ‘active asset test’ to be applied to the share or unit when determining whether the shareholder or unitholder is entitled to the concessions, has been modified to restrict the situations where financial instruments and cash can be included in the active asset test.
This session will look at and practically explore some of these changes.
1 CPD hour allocated
Date:
Tuesday 23 October 2018
7.45am – 9.00am (light breakfast served)
Venue:
DW Fox Tucker Boardroom
L14, 100 King William St, Adelaide
Cost:
Please note that there is no charge for this event.
RSVP:
RSVP by Monday 22 2018, to: events@dwfoxtucker.com.au
We look forward to seeing you there.