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  • Capital gains from a trust

    Distributions from trusts can include different types of amounts. The following two are relevant for capital gains tax (CGT) purposes:

    • capital gains
    • non-assessable payments.

    Non-assessable payments mostly affect the cost base of units in a unit trust (including managed funds) but can in some cases create a capital gain.

    The trustee should advise you whether the CGT discount, the small business 50% active asset reduction, or both, have been taken into account in working out the trust's net capital gain.

    Trustees, including fund managers, may use different terms to describe the methods of calculation and other terms. For example, they may use the term 'non-discount gains' when they refer to capital gains worked out using the indexation or 'other' calculation methods.

    Last modified: 09 Jun 2015QC 22819