Capital Gains Tax Companies

Capital Tax Companies

Please read our previous Blog on capital gains tax indexation and 50% discount for individuals regarding the general rules which apply.

Where a company calculates its capital gain:

• The CGT discount is not available
• If a company acquired the asset after 11.45am on 21 September 1999, indexation of its cost base is not available, and
• If the company acquired the asset at or before 11.45am 21 September 1999, indexation of its cost base , frozen at 30 September 1999 is used to calculate the capital gain if the asset has been acquired for at least 12 months before the CGT event.

A net capital loss cannot be applied unless:

• The same people owned the company during the loss year, the income year and any intervening year, and
• No person controlled the company's voting power at any time during the income year who did not also control it during the whole of the loss year and any intervening year, or
• The company has passed the same business test.