When a company or trust sells an eligible business asset, how exempt gains are distributed between stakeholders can dramatically affect future super opportunities.
Key Opportunity:
Retirement exemption distributions do not always need to mirror ownership percentages.
This May Allow Couples To:
- Equalise super balances
- Preserve future NCC eligibility
- Improve Transfer Balance Cap outcomes
- Maximise combined retirement-phase assets
Example:
In Gavin and Stacey’s case on page 5:
Streaming more to the lower-balance spouse preserved both partners’ future bring-forward opportunities.
Why It Matters:
A poorly structured distribution could unintentionally:
- Push one spouse over TSB thresholds
- Remove future NCC access
- Reduce long-term tax flexibility
Considering a Business Sale or CGT Concession Strategy?
The way exempt capital gains are distributed between spouses can have long-term implications for super contribution limits, Transfer Balance Caps and future retirement flexibility.
Small structuring decisions today may significantly affect future opportunities.
Visit our Contact Us page to discuss your situation and explore your options.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.