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  • Removing the capital gains discount at the trust level for Managed Investment Trusts and Attribution MITs

    On 8 May 2018 the government announced an integrity measure to prevent Managed Investment Trusts (MITs) and Attribution MITs (AMITs) from applying the 50% capital gains discount at the trust level. On 30 June 2020, the government announced that the start date would be revised from 1 July 2020 to the income years commencing on or after three months after the date of royal assent of the enabling legislation.

    This measure will ensure that MITs and AMITs operate as genuine flow-through tax vehicles, so that income is taxed in the hands of investors, as if they had invested directly. This measure will prevent beneficiaries that are not entitled to the CGT discount in their own right from getting a benefit from the CGT discount being applied at the trust level.

    Under the measure, MITs and AMITs that derive a capital gain will still be able to distribute this income as a capital gain that can be discounted in the hands of the beneficiary.

    Legislation and supporting material

    Legislation is being developed for this measure.

    More information

      Last modified: 10 Jul 2020QC 56190