Capital Gain Within A Unit Trust

Q&A Tax

Question :

Mr.c sold a building during the year in the unit trust.

Which CGT Event it could be?

Is there any exemptions on the CGT Event?

 

Answer :

CGT event E4 would happen if the trustee makes a non-assessable payment to the unitholders.
However, certain non-assessable payments such as the CGT exempt amount under the 15-year
exemption, the retirement exemption and the 50% CGT discount amount would be disregarded
when determining the non-assessable payment for the purpose of CGT event E4.

However, a non- assessable payment which is the 50% active asset reduction amount would be
subject to CGT event E4. Any capital gain made by the unitholders resulting from CGT event E4
may qualify for the small business CGT concessions if the relevant conditions are met.

Refer to ATO TD 2006/71 for more information.

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