Changing IP from HDT to own name

[paisneil]

Hi Guys

Just wondering if anyone has any experience in changing the title from HDT to individual.

The IP is on Victoria and it’s owned by a company which is a trustee under an HDT. Beneficiaries are myself and wifey.

Would stamp duty and cgt be applicable???


Thanks in advance

 

[coastymike]

Why not change the HDT to a unit trust ?

 

[Terry_w]

I was going to suggest same as Coasty.

Will be subject to stamp duty and CGT, new loan fees and conveyancing fees too.

 

[coastymike]

Not if HDT is converted to a unit trust and done properly. Batten has confirmed no cgt and stamp duty. Just needs a private ruling to solidify said position. Maybe nick or James or Martin can apply for one for one of their clients.

 

[Terry_w]

Not if HDT is converted to a unit trust and done properly. Batten has confirmed no cgt and stamp duty. Just needs a private ruling to solidify said position. Maybe nick or James or Martin can apply for one for one of their clients.

Sorry, my post was a bit vague. I mean if title changed to the individuals stamp duty, CGT etc apply.

Keeping the trust as a unit trust would give many advantages - but may not be suitable if you want to have it as the main residence and CGT free in the future.

 

[paisneil]

Hi

Yes thats one of the options, converting into an unit trust.

Its funny, I called the SRO Victoria today and tried to explain an HDT was and whether stamp duty was payable, the lady from the "Complex team" told me as long as its going to be transfered in one of the beneficiarys name that it wasnt applicable.

She seemed to be sure that an HDT would be classified under the big umbrella of family trusts.

Thanks

 

[Terry_w]

You should have spoke to the "extra complex team"!

With this sort of thing you can't expect an answer over the phone - one HDT will differ from the next one.

 

[Aaron_C]

Don't forget in Victoria they have recently changed the old land-rich provisions to now include not just the land value for the transfer of units in unit trusts but now they include the buildings as well - making it harder to avoid double stamp duty.

 

[Terry_w]

Someone has pointed out to me in an email that the stamp duty could be exempt in VIC. s 36 and s36A Duties Act.

 

[redwing]

Why do you want to change Paisneil?

 

[paisneil]

Hi

Thanks Guys

Change driven largely because it is a structure not quite suited to us, we have only one IP in the trust and the fees associated with it are unnecessarily high as well as the land tax so

Ta

 

[Terry_w]

Speak to your advisor as you could probably fix this problem without much drama. Either convert it to a fixed unit trust or to personal names.