Capital Gains on Selling A Business
Question:
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
This question was asked on 1 January 1970
Expert Response
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.