There are a range of things that may need to be addressed early on with the assistance of your accountant or solicitor.
Key examples include:
When you sell your business, you may be eligible to claim certain capital gains tax (CGT) concessions.
For example, you may be able to disregard 100% of a capital gain made on the sale of your business if you:
Alternatively, if you don’t meet the above conditions, there are other concessions that you may be eligible to use that could reduce or eliminate any taxable capital gain on the sale of your business.
You should consult with a registered tax agent to determine the CGT implications, whether the small business concessions will be available to you and which ones should be claimed.
Following the sale of your business, there are strategies that you may be able to use to get some or all of the sale proceeds into super and generate a tax-effective income in retirement.
Depending on your circumstances, you may be able to contribute up to $1.395m from the sale of your business into super in FY2015/16. Furthermore, the money will not count towards the concessional or non-concessional contribution caps that would ordinarily apply when contributing to super.
You should consult your financial adviser and accountant to ascertain which small business CGT concessions will be claimed and help formulate a contribution plan that takes advantage of the available contribution caps.
While boosting your super could be a top priority, there are a number of other issues you may need to address when it comes to selling your business and planning for retirement.
For instance, you may need to:
You should consult your financial adviser in conjunction with legal advice from your solicitor for any changes that may need to be made to your estate planning.