In order to give effect to a client’s succession objectives it is often necessary to undertake some asset restructuring or divestment pre-retirement or pre-death to ensure that assets are passed to the next generation without unintended tax abrasion. Most advisors are aware that to position your client in a suitable light, the narrow and complex, high road of specific tax exemptions has to be well charted and trodden carefully.
This paper provides consideration of key issues arising in this context:
- recognised concessions and tax implications available following death
- commercial considerations/tax implications in passing assets before death
- common reasons for pre-death restructures
- relevant CGT roll-overs including CGT small business concessions
- stamp duty exemptions and relief
- GST considerations for business restructures.