CGT/Family Trust

[MTR]

Hi All

When selling property in family trust structure do you receive the 50% discount (after 12 months), as you do when selling in personal name??

Thanks
MTR

 

[coastymike]

yes trusts receive the 50% general CGT Discount. First question is to make sure it is on capital account and therefore the CGT Discount applies as oppossed to being on revenue account.

 

[Paul@PFI]

There can be instances where the trust wont be able to distribute trust income (that includes a CGT gain) to a beneficiary. Or the trustee may be able to but may choose not to. ...eg to use carried fwd losses. However provided the trustee has made a valid income distribution this is not usually a concern.

The Trustee may also choose to pay the CGT on behalf of a beneficiary. The beneficiary is bound by the trustee choice. A good example is a non-resident. Tax law may force the trustee to pay tax that is then creditable to the beneficiary.

 

[Rob G.]

Second point is to make sure that an eligible beneficiary is presently (or specifically) entitled to the trust net capital gain.

 

[MTR]

Thanks, very helpful

Cheers
MTR