Capital Gains on Selling A Business

Published Thu, August 7 2008 2:19pm

I sold my share in some pharmacies last year to the other 2 existing partners, and my accountant and an independent accountant both said I have no choice but to pay about $520K in capital gains tax as I am way over the threshold for small business cg relief. Since then another person said that as I sold a minority share in a going concern the cost base of the pharmacies should not have been taken into account and I should not have to pay tax on the capital gain of the goodwill. I am confused. Do you have an opinion on this? Regards Tony Bugeja Healthpoint Chemist Mackay

Capital Gains

Get tax advice!

Tax advisers and lawyers will differ on the treatment of capital gains in the sale of a going concern or partnership.

If in doubt, you could seek a tax ruling.

We have seen both treatments.

Given the specialist nature of the question, it is inappropriate for us to advise without full details.

Disclaimer: While the following response provides some insight into Capital Gains, it does not constitute advice. For specific assistance or advice, please contact Medici Capital on 03 9853 7933.

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