21 Capital gains
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
Did you have a CGT event or receive a capital gain from a trust during the year?
If the trust had a CGT event happen during the income year, or if the trust's share of the net income of another trust included an amount attributable to a capital gain made by that other trust, print X in the Yes box at G. Otherwise, print X in the No box at G.
If the answer to this question is yes, answer the question below.
Did this CGT event relate to a forestry managed investment scheme interest held other than as an initial participant?
If any of the trust's CGT events or the trust's share of the net income of the other trusts that was attributable to capital gains is related to a forestry managed investment scheme interest (held other than an initial participant) print X in the Yes box at H. Otherwise, print X in the No box at H.
Generally a trust makes a capital gain or capital loss if certain events or transactions, called CGT events, happen. Most commonly, CGT events happen to a trust's CGT assets (for example, the disposal of a CGT asset) while other CGT events relate directly to capital receipts (capital proceeds).
If the trust ceases to hold or use a depreciating asset which was used for both taxable and non-taxable purposes, a CGT event may happen to the asset. A capital gain or capital loss attributable to that non-taxable use may arise, for more information see the Guide to depreciating assets 2012.
An Australian resident makes a capital gain or capital loss if a CGT event happens to any of its worldwide CGT assets.
Foreign entities and CGT events
A capital gain or capital loss from a CGT event may be disregarded if the trust is a foreign trust just before the CGT event happens, if it happens in relation to a CGT asset that is not taxable Australian property, see section 855-10External Link of the ITAA 1997.
A CGT event in relation to an interest in a fixed trust held by a beneficiary who is a foreign resident may not be subject to CGT if at least 90% of the assets of the fixed trust directly or indirectly through a chain of fixed trusts in which the fixed trust has an indirect or direct interest are not taxable Australian property at the time of the CGT event (see section 855-40External Link). If you are the trustee of such a fixed trust, you may need to attach sufficient additional information to the statement of distribution provided to the beneficiaries, to enable them to work out their CGT position.
For further information, see Guide to capital gains tax 2011-12.
CGT worksheets and schedules
For more information about CGT events, see the Guide to capital gains tax 2012 which includes a:
- capital gain or loss worksheet for calculating a capital gain or capital loss for each CGT event
- CGT summary worksheet for calculating the trust's net capital gain or capital loss
- CGT schedule.
The worksheets will help you calculate a trust's net capital gain or capital loss for the income year and complete the CGT entries on the trust tax return. You do not have to complete the worksheets. However, if you do, do not attach them to the trust tax return, but keep them with the trust's tax records.
Complete a CGT schedule and attach it to the trust tax return if the trust had:
- a CGT event occur in relation to an FMIS interest that is held other than as an initial participant
- total current year capital gains greater than $10,000, or
- total current year capital losses greater than $10,000.
Net capital gain
The trust's net capital gain is the total capital gains it made for the income year, less its current year capital losses, unapplied prior year net capital losses, CGT discount and any other relevant concessions. Relevant concessions are the small business:
- CGT 50% active asset reduction
- CGT 15-year asset exemption
- CGT retirement exemption
- CGT rollover.
Show at A the amount of the trust's net capital gain. If you have used the CGT summary worksheet or CGT schedule, this is the amount at:
- G at part H of the CGT summary worksheet in the Guide to capital gains tax 2012, or
- G at part H of the CGT schedule.
For more information on how to calculate the trust's net capital gain, see the Guide to capital gains tax 2011-12.
For information about the small business concessions, see the:
Record any unapplied net capital losses carried forward to later income years at V item 27. The trust may need to complete a losses schedule, for more information see the Losses schedule instructions 2012.
Excepted net capital gain of a minor
Include the amount of any excepted net capital gain of a minor at A and provide a statement on a separate sheet of paper:
- detailing the distribution of excepted net capital gains to each beneficiary, and
- listing each beneficiary who is considered to be an excepted person, giving supporting reasons.
Attach this statement to the tax return and print X in the Yes box at Have you attached any 'other attachments'? at the top of page 1 of the tax return.
For an explanation of excepted income and excepted person, see appendix 10.
Last modified: 13 Aug 2014QC 28037