rhinoerikbainkom
New Member
Any insight on moving from 100% personal shareholding pty Ltd to a Family Trust or Bucket Company? Need minimal tax/fee impact. Revenue: multiple 7-figures. Want efficiency. Thanks Gents!!
How can I shift from a Pty Ltd to a Family Trust with minimal tax impact?
- Thread starter rhinoerikbainkom
- Start date
ronlevuruxsuper
New Member
I truly can do it, but there’s the hard truth that I need to pay the tax. I wish you had set it up correctly from the very beginning.
Breadzilla
New Member
If you generate multiple seven figures in revenue, you likely don't qualify for the small business CGT concession's $2m revenue test unless your net assets are under $6m.
If you qualify for either test, you may be eligible for a 50% CGT exemption.
Even if you pay 100% CGT and your business is profitable, paying tax now will save you more in the long term if structured appropriately. The earlier, the better.
Good luck.
If you qualify for either test, you may be eligible for a 50% CGT exemption.
Even if you pay 100% CGT and your business is profitable, paying tax now will save you more in the long term if structured appropriately. The earlier, the better.
Good luck.
WolfRolanCale
New Member
I've done this for a few clients before.
1. You’ll need a tax valuation on the business since it’s not an arm’s‑length sale. I’d suggest going with a qualified advisor from a reputable advisory group that’s usually the safest bet.
2. Yes, there will be tax and with multiple seven‑figure revenue, it’ll probably b a decent chunk. The good news is you might qualify for the CGT discount and maybe even some of the small‑business CGT concessions.
3. The tricky part is the cash needed. You’re “selling” the shares but won’t get any cash like you would with a third‑party sale. There might be a way to take cash from the business for this, but watch out for Division 7A implications.
It would’ve been ideal to chat with your accountant about this much earlier, but the next best time is right now.
1. You’ll need a tax valuation on the business since it’s not an arm’s‑length sale. I’d suggest going with a qualified advisor from a reputable advisory group that’s usually the safest bet.
2. Yes, there will be tax and with multiple seven‑figure revenue, it’ll probably b a decent chunk. The good news is you might qualify for the CGT discount and maybe even some of the small‑business CGT concessions.
3. The tricky part is the cash needed. You’re “selling” the shares but won’t get any cash like you would with a third‑party sale. There might be a way to take cash from the business for this, but watch out for Division 7A implications.
It would’ve been ideal to chat with your accountant about this much earlier, but the next best time is right now.
everyforkfacekno
New Member
Reach out to the contact at ATB; they should be able to sort you out.