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Disposal of Assets - When do you have to pay CGT? |
Did you know that as a taxpayer you may be subject to CGT if you have an asset which is compulsorily acquired by a government agency? |
Your first thoughts might be "I didn't want to sell the asset, so why should I have to pay any capital gains tax?" |
The answer to that is simply that CGT may apply whenever an asset is deemed to have been disposed - the reason is immaterial. |
CGT may be imposed not only where the taxpayer deliberately disposes of something, but acquired or where the asset has been destroyed. |
In limited circumstances the taxpayer may be able to receive an amount in compensation for a compulsory acquisition without that amount being subject to CGT. Consult us if you would like further information on this matter. |
Paul Clark |
paul.clark@cmlawyers.com.au |
