Tax Talk | Tax changes and small business cashflow loans reminder
With 1 April fast approaching, there are several tax rate changes taking effect that you should be aware...
When a business sale and purchase occur, the allocation of the purchase price between assets acquired has tax consequences. While there are general allocation rules, in some cases it is possible for vendors and purchasers to allocate different amounts to the same assets, often resulting in a tax benefit.
Time to read: 1 mins
As a result, government proposes to insert new rules determining how purchase prices are to be allocated to business assets in order to ensure symmetry between purchasers and vendors. The key proposals are:
These rules will only apply to transactions with a purchase price of more than $1 million, or where the purchaser’s total allocation to tax base property is more than $100,000
This amendment would apply to agreements for the disposal and acquisition of property entered into on or after 1 April 2021.
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