• Trusts – tax consequences of trust splitting

    Trust splitting is a common term for an arrangement where separate trustees are appointed over different assets of an existing discretionary trust.

    Each trustee is typically controlled by a different party.

    The intention of trust splitting is to produce a structure where each trustee is able to deal with the assets it holds independently of the other trustees. In particular, the trustee is able to deal with the assets largely for the benefit of the controlling party.

    In consultation with tax practitioners we are developing guidance about the tax consequences of trust splitting arrangements.

    Find out about:

    • Matters under consideration201744 Trust splitting – does a new trust arise and what are the tax consequences, including CGT implications and practical tax issues (for example: TFN, elections)

    See also:

    Last modified: 18 Aug 2017QC 53129