What is stamp duty in NSW? Does stamp duty apply to property transfers? Duty will be reduced by the amount of duty paid in a previous acquisition within the statement period. Landholder duty is payable on the acquisition of a significant interest in a private company or unit trust that owns land and meets certain other requirements.
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 ’. 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.
A landholder is a unit trust or company that has land holdings in NSW with a threshold value of $000or more. The stamp duty used to be 0. Whether stamp duty applies to property transfers depends on the nature of the transaction and the value of the property. As a result, the State and Territory Governments were losing revenue. Variations to unit trusts.
A variation of a unit trust would rarely affect the relative interests of unitholders in the trust property, and is therefore unlikely to constitute a transfer. Any change in the relative interests of unitholders is more likely to be achieved by way of transfer , allotment or redemption of units. It also sets out exceptions where they are not able to be processed on EDR and must be submitted to Revenue NSW.
Pursuant to Section 5 Duties Act, duty of $ 500.
However, you still must pay transfer duty on any land the business holds. Duty will be assessed on the value of the lan including leasehold interests, fixtures and goods. 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.
Stamp duty for transerring units in unit trust. Before a party is entitled to $stamp duty on the transfer, certain requirements must be met to the Chief Commissioner’s satisfaction (s(3)). 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 54(3) of the Duties Act if certain criteria are satisfied.
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. In the stamp duty area, the consequences vary from State to State depending on the legislation. In New South Wales the legislation specifically provides that an allotment or redemption of units assuming no written instrument is brought into existence, does not result in a change of beneficial ownership of the underlying trust assets arising.
However if you transfer the title itself you will pay stamp duty on the market value of the property transferred. Duty is also payable on a transaction resulting in a change in the beneficial ownership of dutiable property (other than a transaction involving units in a unit trust scheme). Woodfield Constructions v Commissioner of. Jackson acquires units from an existing unit holder in the trust. The XYZ Unit Trust operates a business in Queensland.
There are units in the trust , with unit holders each holding units. A member of the trust surrenders their units.
More often than not, the trustee of a unit trust is a corporate trustee. See Duties Act for details if applicable. 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. If you are setting up a discretionary trust in New South Wales, you will need to pay stamp duty after signing the trust deed.
This should be confirmed with OSR. In NSW , you must first pay trust stamp duty on the declaration of the trust itself. When to Pay Trust Stamp Duty. The duty payable is $5and it must be paid within three months of the date from which the trust deed is. For example Sarah has a factory worth $1.
She wants to transfer the property to her daughter (Zara) so her daughter can continue to use the factory in the family business. In Victoria, landholder duty can apply where a person makes a relevant acquisition in a unit trust or company that has landholdings in Victoria of more than $1M. Nominal duty of $will now be payable on certain transfers of property to the custodian of a trustee of a self managed superannuation fund not in conformity with an agreement for sale or transfer where duty has been paid on the agreement and the purchaser under the agreement is the trustee.