Do you intend to claim the small business capital gains tax concessions when you sell your business? Have you dealt with the things that could deny you the concessions?
Most small business owners probably assume that they will qualify for the small business capital gains tax concessions. That’s why it comes as quite a shock when a business owner is informed that their capital gain from the sale of their business will not be reduced by the small business concessions.
They poured all those years of hard work into their business, only to see half of their reward disappear in tax. Maybe they at least qualified for the general 50% discount, and only a quarter disappeared in tax. Still, that’s a long way from a possible 0% disappearing.
Having advised on many business sales over the years, we have seen situations where things featured in a business years before being sold which caused a denial of one or more tax concessions.
This happens more often than you might think, and the saddest part is that in the vast majority of cases, some planning in the years before the sale would have produced a very different result.
Nexia Edwards Marshall offers to undertake a Business Horizon Review to identify anything that could cause the eventual sale of your business to miss out on any tax concessions.
The review will include things like:
The ideal time to undertake this review is 5-10 years ahead of the anticipated sale. Leaving it until less than 5 years away escalates the risk of being unable to redress identified issues that will deny the tax concessions.
We will deliver the above for a fixed price of $3,500 + GST.
This is a relatively small cost that can provide great peace of mind. This peace of mind is in knowing that anything which might prevent maximising your after-tax funds from exiting your business has been identified.
If you would like us to undertake the review, please provide the following: