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Your time frame to act could be as short as 7 days, after you have sold a business #65

Thinking of selling? Want to Retire, work for someone else, or buy another business?
READ ON

The Australian Government have broadened the conditions to meet the Small Business Capital Gains Tax (CGT) concessions making them accessible to more people.  There are a number of basic conditions that need to be met to be eligible to reduce or eliminate your CGT. Qualifying for these conditions can be simple or complicated, depending on your total circumstances. A summary of the benefits of Small Business CGT concessions are below. The full details are available on the ATO website: www.ato.gov.au

Want to pay no CGT or contributions tax?

Depending on your circumstances, the Small Business CGT concessions could allow you to:

•  Eliminate or significantly reduce your CGT on sale of your business.
•  Use the full sale proceeds to buy another business and delay paying CGT til you sell your final business.
•  Contribute over $1 million into the concessionally taxed superannuation environment from the sale proceeds.
•  In-specie transfer your Business Real Property into Superannuation without the superfund requiring the funds to purchase the property.

Your time frame to act could be as short as 7 days...

•  The process of researching and understanding your situation and then developing strategies to maximise your entitlement to the concessions, takes time. As the time frames to act after receiving the funds can be as short as 7 days, it is better to start preparing for receiving your sale proceeds as soon as possible.

Not all accountants or financial planners have expertise in this area…

•  The Small Business CGT Concessions are quite complicated and could be interpreted incorrectly.
•  The right advice will proactively minimise or   eliminate your CGT liability and ensure that the contributions into Superannuation are made within necessary timeframes.
•  Knowing what options are available to you can help in preparing your business for sale.

Many minds are definitely better than one...

Piccadilly Financial Group has many educated and award winning minds that will help tailor a strategy for you. We combine accounting knowledge and financial planning expertise in one office and can therefore put together strategies that are current and proactive.

The advisers at Piccadilly Financial Group share their knowledge in the areas of accounting, tax, superannuation and investments so you can be assured to receive qualified expert advice.

The testimony below demonstrates how Piccadilly Financial Group can make a difference to your net sale proceeds.

“We have had great success with respect to integrating Small Business CGT concession advice to our practice with the help of Piccadilly Financial Group.

Piccadilly Financial Group has a clear advantage over other financial planning firms through their understanding of accounting and taxation related issues.

Recently, some of our business clients were looking to sell a business asset and the restructuring advice that Piccadilly Financial Group put together using Small Business CGT concessions and Superannuation, provided our client’s an immediate tax saving of $331,000.

Also, they considered our clients on going needs and recommended a strategy which enabled our clients to create tax free income streams of $94K per annum and prepared our client's commercial property structure so there would be no CGT on sale of assets in the future.

Working with Piccadilly Financial Group provides our clients with confidence their financial planner is proactively interested in their financial futures. A great result for our clients, for us and for Piccadilly Financial Group.”
James Gullotta, Littlewoods Chartered Accountants”.

So whether you are a sole trader, family business, partnership, company or trust, and you are thinking    of retiring, buying another business or returning to the work, check out your options to retain more of the money you have worked hard to build.

In the next issue of Australian Business For Sale®, we will highlight some options available to business owners who wish to prepare for selling their business.

All advice relating to investment and superannuation is provided by advisors within the Piccadilly Financial Group as Authorised representatives of Professional Investment Services Australian Financial Services License number 234951

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