Currently in NSW, stamp duty may be payable if you acquire business assets (other than land). The good news is this duty is being abolished on 1 July 2012.
Stamp duty will no longer be payable on the purchase of the following business assets:
- goodwill
- intellectual property, such as trademarks, copyright and patents, (when part of a transaction which includes goodwill)
- plant and equipment (when part of a transaction which includes other dutiable assets)
- licences, such as taxi and liquor licences
- the interest of a lessee in a lease of business premises or land in NSW.
This may equate to a saving of between 1.25% and 5.5% of the asset value - often a very significant transaction cost.
Savings for our clients could be made in the following situations:
1. A purchase of business assets – reduced acquisition costs.
2. A sale of business assets – clients may be able to realise a higher price on the sale of the business assets as the purchaser will no longer be burdened by this acquisition.
3. A restructure of your business affairs – clients may be able to restructure their business group without the additional cost of this particular stamp duty.
Transactions like this are often very significant in the life of a business. Make sure you involve us early in the process - planning is crucial. We have expertise in relevant areas such as valuation, due diligence, restructuring and taxation advisory - let us help you to shape that transaction plan.
Questions? Andrew Crawford or give your Altus Adviser a call.