CGT – Property Development

CGT – Property Development

The revenue/capital distinction It is very important to determine whether the property is being sold on revenue or capital account as it determines whether: any gain is exempt because it is a disposal of a pre-CGT asset the 50% discount and the CGT small business...
CGT Earnout Arrangements

CGT Earnout Arrangements

Capital Gains Tax (CGT) Earnout arrangements are generally where a business is sold for a set amount plus a percentage of profits in the future for a specified period.  The tax treatment of these rights to income in the future has varied over the years. The latest...
Allocating value to business assets

Allocating value to business assets

When selling/buying the assets of a business, for CGT and depreciation purposes it is necessary to allocate the consideration received/paid for each of the assets.  Due to the differing taxation implications for both, the purchaser and vendor may have conflicting...
CGT Main Residence Exemption

CGT Main Residence Exemption

The capital gains tax (CGT) provisions in the Income Tax Assessment Act 1997 (ITAA 1997) do not apply to the disposal of the main residence where certain conditions are met. Generally, this means that where an individual sells the main residence, no CGT is payable...
CGT Capital Gains Tax Overview

CGT Capital Gains Tax Overview

The Capital Gains Tax (CGT) provisions were introduced with effect from 20 September 1985.  They generally apply to include net capital gains in assessable income for the income year.  Net capital losses are carried forward. The CGT provisions detail the various...
CGT Small Business Concessions

CGT Small Business Concessions

This article is a brief overview of the small business capital gains tax (CGT) concessions. The small business CGT concessions can significantly reduce and sometimes totally eliminate tax payable on the sale of a small business. The concessions are therefore extremely...