Item 52 - Non-refundable carry forward tax offsets

From 1 July 2016, a limited partner of an early stage venture capital limited partnership (ESVCLP) may qualify for:

• a non-refundable carry forward tax offset of up to 10% of their contribution to an ESVCLP. The ESVCLP must have become unconditionally registered on or after 7 December 2015. This includes an ESVCLP that was conditionally registered before this time and then became unconditionally registered on or after 7 December 2015.

• a tax exemption for part of the capital gain or income from the disposal of the investments that accrued to the end of the period ending six months after the end of an income year in which the investee’s value has first exceeded $250 million.

An entitlement to the ESVCLP tax offset may be available for contributions made to an ESVCLP. The ESVCLP must have become unconditionally registered on or after 7 December 2015.

The trust may qualify for the ESVCLP tax offset for the income year if the trust invested in an early stage innovation company during the year, or received a share of distribution of ESVCLP distribution from another Trust or a Partnership.

Use the MYOB Tax worksheet esv to record the details of the ESVCLP investment which is provided at label H. Access to the worksheet is provided by clicking label H and selecting the worksheet.

The amount of the offset claimed is integrated to the MYOB Tax label on the face of the return and from there passed to the distribution statement fields to be available for distribution.

From 1 July 2016, investors that acquire newly issued shares in a qualifying Australian early stage innovation company (ESIC) may be eligible for:

• a tax offset equal to 20% of the amount paid for the new shares. This tax offset is capped at a maximum tax offset amount of $200,000 for each income year for the investor and their affiliates combined in each income year. The offset is not refundable, but it can be carried forward to the next income year.

• a modified CGT treatment under which the investor can disregard any capital gains made on the shares that have been continuously held for between one and ten years. Any capital losses on the shares held for less than ten years must be disregarded.

To qualify, there are requirements that need to be satisfied by the investor and by the early stage innovation company (ESIC).

Refer to the Trust tax return instructions for full information on eligibility for this offset.

Use the MYOB Tax worksheet esv to record the details of the ESVCLP investment which is provided at label H. Access to the worksheet is provided by clicking label H and selecting the worksheet.

The amount of the offset claimed is integrated to the MYOB Tax label on the face of the return and from there passed to the distribution statement fields to be available for distribution.