Show download pdf controls
  • 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.

    We have released a draft Taxation Determination that expresses the preliminary ATO view that a trust split of the type described in the determination can have CGT consequences.

    Consultation on the draft Taxation Determination has now closed. You can keep track of updates via our advice under development program.

    See also:

    • Draft Taxation Determination TD 2018/D3 Income tax: will a trust split arrangement of the type described in this draft Determination cause a new trust to be settled over some but not all assets of the original trust with the result that CGT event E1 in subsection 104-55(1) of the Income Tax Assessment Act 1997 happens?
    • Trusts
    Last modified: 10 Aug 2018QC 53129