This achievement is a testament to the dedication and expertise of our entire litigation and dispute resolution team, who have continued to provide outstanding service to clients throughout FY24. ...
In this edition of It depends, associate Sacha Robinson talks about whether there is duty payable on a transfer of units in a unit trust.
Welcome to today’s edition of It Depends. Today, we will be talking about whether there is duty payable on a transfer of units in a unit trust.
It depends. It depends on a couple of factors, such as where the unit trust owns assets and what those assets are. For example, if the unit trust owns dutiable property in Queensland, there will likely be duty payable on a transfer of units in that unit trust, because there has been a trust acquisition of a trust interest.
In Queensland, dutiable property includes real property and also Queensland business assets. This means that if your unit trust runs a business in Queensland or owns property in Queensland, then it is likely there will be duty payable on a transfer of units in that trust.
It depends. In Queensland, duty will be determined in accordance with the dutiable value of the trust interest. The dutiable value of the trust interest is the higher of: the consideration paid for the units; and the amount calculated by applying the percentage of the trust interest being acquired or surrendered to the unencumbered value of the dutiable property held by the trust.
If you are transferring units in a unit trust, you should always consider whether duty will be payable on the transfer of the units or if any exemptions apply. Please contact me or a member of our team if you would like to discuss.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.
Subscribe to our interest lists to receive legal alerts, articles, event invitations and offers.
Cooper Grace Ward acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples.
Fast, accurate and flexible entities including companies, self-managed superannuation funds and trusts.