What is stamp duty in NSW? Does stamp duty still apply to trusts? A unit trust may be a special trust , a fixed trust or a family unit trust. To be a fixed trust , certain criteria apply. If these criteria do not apply, the trustee may restructure the trust deed to meet the criteria but the threshold will only apply from the next tax year.
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. When to Pay Trust Stamp Duty. Stamp duty is payable by the person declaring the trust.
The duty payable is $ 5and it must be paid within three months of the date from which the trust deed is executed. You pay this duty to the NSW Government Office of State Revenue (OSR). 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. 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. Legal Tip 166: Stamp Duty on Trust formations in. Tax Tip 139: Abolition of Duty on transfers of. Avoiding Stamp Duty- unit trust or separate.
In the Buckle decision, the High Court found that a deed that varied the terms of a. You may be liable for landholder duty when you acquire shares or units in a company or unit trust which owns land (‘landholder’). A landholder is a unit trust scheme or a private or a publicly listed company that holds land (‘landholdings’) in NSW with an unencumbered value of $million or more. All types of trust deeds (with the exception of Superannuation Trust Deeds) established in either NSW , NT or Victoria need to be duty stamped upon execution.
This can be done either directly by the relevant state revenue office (depending on the state) or by an agent. Patricia Holdings is a registered agent of Revenue NSW (OSR) and Victorian State Revenue Office (SRO), allowing us to duty stamp most of your Victorian and NSW trust deeds. For transfer duty and landholder duty purposes, trustees are associated persons if any person is a beneficiary common to the trusts of which they are trustees, and a company and a trustee are associated persons if a related body corporate of the company is a beneficiary of the trust (not including a public unit trust scheme) of which the. Where an interest in a property is acquired by or held on trust by a discretionary trust , the trustee of the trust may be liable for the surcharge if any of the potential beneficiaries is a foreign person. In NSW trusts need to be stamped within months of execution, and the stamp duty is $500.
In NT trusts need to be stamped within days of the execution of the trust , and stamp duty is $20. In VIC trusts need to be stamped within days of execution of the trust , and stamp duty is $200. Change in trustees 54A.
Transfers in relation to managed investment schemes 55. Property vested in an apparent purchaser 56. Transfer of property subject to a statutory trust to a beneficial owner 57. In NSW , stamp duty is calculated depending on the value of the property. Remember that these standard rates don’t apply.
ALERT – TRUSTS HOLDING RESIDENTIAL PROPERTY IN NSW MAY NEED TO CHANGE TRUST DEEDS BEFORE DECEMBER OR PAY FOREIGN SURCHARGES ON STAMP DUTY AND LAND TAX. For Stamp Duty and Land Tax purposes, any residential land owned by a foreign resident in NSW will be subject to higher rates. An additional for Stamp Duty and an additional for Land Tax. Ordering the Stamping Service. NSW stamp duty law does not currently expressly deal with declarations of custody trust in relation to limited recourse borrowing arrangements.
The Duties Act contains a concessional duty charge of $50.