ARTICLE · 19 OCTOBER 2011

The small business CGT concessions: Value your liabilities

Moore Australia

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Concessions provide taxation relief to small business by reducing or deferring the taxable capital gain that can arise.

AustraliaTax

Stephen O'Flynn

Simon Tucker

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A recent decision handed down by the Full Federal Court (Commissioner of Taxation v Byrne Hotels Qld Pty Ltd [2011] FCAFC 127) has given much needed guidance to the application of the small business CGT concessions. This decision has clarified that liabilities arising from transaction costs incurred prior to a sale (e.g. agents fee or legal costs) can be taken into consideration when calculating the maximum net asset value test ("MNAV").

Small business CGT concessions

The concessions operate to provide taxation relief to small business owners by reducing or deferring the taxable capital gain that can arise when a business is sold. The four small business CGT concessions are:

Small business 15-year exemption

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