Please see attachment re. business structure problem. I have attached this on another thread but thought it deserved its own
As mentioned in the other thread companies do not get the general 50% CGT discount. Now an important component in the value of a FP business is the trail so in most inastance there is going to be a capital gain when its sold. With this structure the only way to get the general 50% CGT discount would be to sell the share from the company to the new "FP". You may find potential buyers are reluctant to buy a company, which then means the company gets the Capital Gainm which cuases its own headaches. I'd be at least holding the assets in a DT. Other than that, there may be some part of the Family Trust or Interposed Entity rules that could be a problem with possible pushing of trust losses from one trust to another - but I'd need to read a heap more. Cheers
