Hi,
We have a client (55yo) who is considering selling his business. He has ran the business for 15 years. Does the 15 year exemption apply here.
Scenario 1: Receives half payment in cash and the rest as a % shareholding in the buyer's company.
Scenario 2: 100% cash and buy into the buyer's company.
Both scenarios, he will be working in their business.
Hi @LHP15,
Your client may be eligible for the small business 15-year exemption. There are key conditions that must be met. Here's some general information for your scenarios.
Scenario 1: If your client is working in the buyer’s business, and the role is significantly reduced, it may still qualify.
The shareholding received might not be eligible for the 15-year exemption. The exemption applies to the capital gain on the original business. Not the value of shares received (unless they are treated as part of the sale consideration).
Scenario 2: If the full sale proceeds are received in cash, and the CGT event is tied to retirement., then the reinvestment won't affect the 15-year exemption on the original sale.
Here’s more info on small business CGT concessions.
You can also ask us for tailored tax advice, for guidance that relates to your specific scenario.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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