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  • Tax consequences of capital elections

    Once a MIT makes an election, it is permanent and cannot be reversed.

    For a MIT that makes an election for capital treatment, gains and losses on disposal of eligible assets will be assessed only under the CGT provisions for each year that the MIT is an eligible MIT.

    However, the capital election will not apply where the trust does not meet the definition of a MIT for the relevant income year.

    See also:

    Tax consequences of not making an election

    If a MIT is eligible to make an election, but does not do so by the relevant date, any gains or losses on the disposal of eligible assets will be treated on revenue account under general tax law principles.

      Last modified: 09 May 2016QC 23181