CGT Articles

The tax consequences of creating a life interest and a right to reside are set out in Taxation Ruling 2006/14. In respect of life interests, it is worth understanding from the outset that there are two distinct forms of life interests: equitable and legal. An...

Contents Eligibility Significant stakeholders Common stakeholders Impact of rollover on shareholders (original interest holders). Impact of rollover on acquirer The scrip for scrip rollover is designed to enable the exchange of shares in a company or units in a trust...

Contents Satisfying the $10 million aggregated turnover test Meaning of aggregated turnover Meaning of annual turnover Meaning of connected with an entity Meaning of affiliate An entity is a small business entity if it: carries on a business, and satisfies the $10...

What is a share buyback? A share buyback involves a company purchasing its own shares from shareholders. The company is thereafter required to cancel those purchased shares. A share buyback is not the same as the redemption of shares whereby the company redeems shares...

Contents What is an option? How does an option work? Tax implications of options Renewing an option Disposal or lapse of option What is an option?An option is a right to acquire an asset from the grantor (call option) or dispose of an asset to the grantor (put option)...

Contents Surrender of lease payments Lease incentives Lease variations Lease premiums Long-term lease CGT discount It is common for a lessor (landlord) or lessee (tenant) to make special payments to the other in respect of lease arrangements. Examples of these types...

It is very common for a small business to restructure to facilitate growth or adapt to commercial needs. By ‘restructure’ we refer to the process of changing the legal structure used to operate a business. Legal structures include the following: Sole Trader...

Contents Setting the scene CGT event D2 – grant of an option? Options “enlivened” Market value Insurance Owners of a business (including family businesses) can plan for the proper succession of their business on the death or disablement of an owner or controller by...

Contents Why the distinction matters Three possibilities Mere realisation Examples of subdivisions/developments on revenue account Examples of subdivisions/developments on capital account It’s not uncommon for landowners of decent sized blocks to release their land’s...

What is a CGT event?When you sell an asset that is subject to capital gains tax (CGT), it is called a CGT event. This is the point at which you make a capital gain or loss. There are other CGT events, such as the loss or destruction of an asset, or creating...