This presentation explores two recent rounds of amendments to the CGT small business concessions which have applied from 1 July 2006 and 1 July 2007 respectively. These amendments have fundamentally altered the way the concessions work and have consequently impacted upon structuring issues and exit strategy planning issues for clients. This presentation focuses on opportunities and issues, including:
- the small business entity provisions and the benefits of carrying on a business (even in a small way)
- the maximum net asset value test and the new (narrower) definitions of "affiliate" and "connected with"
- selling shares or units and the need to carefully manage the distribution process through indirect ownership layers
- issues with active assets.