CGT on the redemption of units in a HDT

[giveitago]

Hi Guys

Went to my accountant to enquire about setting up a Hybrid Discretionary Trust to purchase IPs. His response was a blank stare so I preceded to give my accountant a quick and dirty on HDTs thanks to Dales book.

His only concern was the CGT implications on the redemption of the units in a HDT.

Are the units purley income or do they have a capital conponent as well and how does the ATO view the redemption of the units

Thanks in advance

giveitago

P.S The accountant to his credit didn't charge me for his time as he received an education for free. Maybe I should have charged him for my time. :)

[Aceyducey]

giveitago,

Get a new accountant.

Cheers,

Aceyducey

[NormH]

I agree with Aceyducey, get a new accountant.

the units are income units, hence no capital. Your deed may even allow for the trustee to redeem the units less than you paid for them. At the end of the day you are entitled to no capital growth in the trust.