cgt retirement option

Question

 · Accepted Answer

RichATO · Answer

Congratulations on the successful sale of your business. Have a wonderful time in your retirement! Under the CGT Retirement exemption, capital gains from the sale of active assets are exempt up to a lifetime limit of $500,000. If you're under 55, the exempt amount must be paid into a complying super fund or a retirement savings account. The conditions to be met for this exemption vary on whether you are an Individual (ie sole trader), Company or Trust business entity. Yes, the CGT retirement exemption will be included in your individual tax return. The correct completion of this will be a bit complex and I would recommend using the services of a registered tax agent to assist, if you don't already. If you are under 55 you must pay the CGT exempt amount into a complying super fund as a CGT cap election. There is a form to be completed to do this. Our reference is NAT 71161. You can find a link to this form on the CGT cap election web page. You can read all of the detail about the conditions to be met to to be eligible for the small business CGT concessions on our web site here. I hope that's helpful. RichATO

Explore tax & super topicsExplore tax & super topics

About usAbout us