The High Court has refused the taxpayer special leave to appeal from the decision of the Full Federal Court in Bell v FCT [2013] FCAFC 32. In that case, the Full Federal Court confirmed that a family trust failed the maximum net asset value test for the purposes of accessing the CGT small business concession in respect of a $5m gain made by the trust to which the taxpayer beneficiary was presently entitled.
[FJM Note: It had been held that a $2m loan used to fund a distribution of capital some time earlier was too remote from the any of the assets remaining to be counted in the $5m net assets test. Also about id=”mce_marker”.25m of those moneys had been used to off-set, not pay off a mortgage on a private residence, leading the balance in the offset account to be counted in the $5m test, and the liability to be excluded, as it related to a residence that was excluded. All in all an unfortunate result.]
[LTN 160, 20/8/13]