Selling property, machinery or investments held by the business? The tax treatment differs sharply from regular business profit — and from asset type to asset type.
The key distinctions
- Depreciable assets: gains on assets within a depreciation block follow special short-term rules tied to the block mechanism
- Land and buildings: holding-period rules decide short vs long term; indexation and special rates apply as per current law
- Securities: listed and unlisted instruments follow their own periods and rates, revised from time to time
Reliefs worth planning for
Reinvestment provisions can defer or eliminate gains where sale proceeds flow into specified new assets within prescribed windows — but the conditions are strict and the timelines unforgiving.
Where sellers go wrong
- Ignoring stamp-duty value rules that can tax a higher deemed price on property
- Missing advance tax on a large gain in the quarter it occurs
- Selling late in the year with no time left for reinvestment planning
Talk to us before the sale agreement, not after — tax planning · free consultation.
