Stamp duty on transfer of units in a unit trust nsw

What is stamp duty in NSW? Can stamp duty be transferred? Duty is levied on dutiable property transfers , and with unit trusts the property is actually the units , not the land owned by the trustee. If the units are on a register held in one state and the land in another the relevant legislation could be the state where the units are held and not the state where the land is held.

As such, stamp duty may still be payable on the transfer of shares in a private company or units in a unit trust , where the transfer involves a significant interest and where the company or unit trust (or its linked entities) has land holdings in NSW with a value of $million or more.

There are some exemptions for companies which hold rural land. In NSW the transfer of shares in a company or the transfer of units in a unit trust will no longer incur stamp duty – but only if the company or trust is not a ‘landholder’. The stamp duty used to be 0. A landholder is a unit trust or company that has land holdings in NSW with a threshold value of $000or more. A transfer of property from one entity to another attracts full (or ad valorem ) stamp duty. One example is section of Act, which states that $stamp duty is payable as a result of a change of trustee of a trust.

For example, in NSW and the ACT, stamp duty is payable if the incoming trustee is also a beneficiary of the trust and the trust holds dutiable property.

Is Stamp Duty Also Payable When Transferring Assets to a Trust or When Purchasing Property? You may be liable for landholder duty when you acquire shares or units in a company or unit trust which owns land (‘landholder’). When to pay transfer duty You must pay transfer duty within three months of signing a contract for sale or transfer , except in the case of off-the-plan purchases. All transfers , issues or redemptions of units in a land owning unit trust ( unit transfer or unit register ) are required to be lodged with RevenueSA with a completed Application for Stamp Duty Assessment , together with: a copy of any valuation of the units made in connection with the transfer. In our view if the transfer of the units precedes the transfer of the property and the interest of company is fixed at then a concession of the duty on the to which company continues to be beneficially entitled should apply.

This should be confirmed with OSR. The rights of unit holders are treated as if they are shares in the company. The issue, surrender and transfer of units within the scheme are not within the scope of stamp duty land tax.

Currently, a transfer of dutiable trust property as a consequence of the retirement of a trustee or the appointment of a new trustee will be liable to nominal duty only under section (3) of the Duties Act if certain criteria are satisfied. As a result, the State and Territory Governments were losing revenue. This article explains the step-by-step process on how to transfer units in a unit trust. In a unit trust , the trustee may be either an individual or a company acting as a trustee. Trustees are the legal owner of a trust.

More often than not, the trustee of a unit trust is a corporate trustee. The abolition will bring the NSW duty regime into line with the Victorian duty regime where generally only land transfers, declarations of trusts and significant acquisitions of shares or units in NSW land holder entities will be subject to duty.

Transfer Duty imposed on the issuance of a unit in a unit trust where that unit trust holds no dutiable property, or any interests therein. In South Australia stamp duty is not payable on a transfer of real property from a trustee of a trust to a person who already has a defined beneficial interest in the property. For example, a transfer of property from the trustee of a unit trust to the unit holder.

But there are a couple of tricks you need to be aware of. Provided the company is not and cannot be a beneficiary of the trust and this is embedded in the trust dee then the stamp duty is only $when the unit is transferred to the company as the new trustee. Abolition of certain New South Wales Duties. Stamp duty If a unit trust has real estate worth more than $2m you will pay stamp duty on the transfer of the units (basically). However if you transfer the title itself you will pay stamp duty on the market value of the property transferred.

Stamp duty on establishing trust deeds in NSW is fixe as long as they are stamped within months of the date of execution. The cost is $5plus $for every duplicate trust deed. For example, if you would like four copies of your trust deed stampe the total cost of the stamp duty is $530.