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  • Funds that are ‘100% in pension phase’

    A fund is ‘100% in pension phase’ if 100% of the fund’s assets are supporting account-based income streams. In these cases, the assets meet the definition of segregated current pension assets. If a fund was ‘100% in pension phase’ during the pre-commencement period, and its members commuted amounts to the accumulation phase to prepare for the transfer balance cap, CGT relief may be available.

    If the fund transferred specific assets to support these new amounts in the accumulation phase, the CGT relief is available for those assets provided the other eligibility criteria were met.

    Alternatively, the fund may have chosen to adopt the proportionate method from that date. In this instance all of the fund’s assets ceased to be segregated current pension assets from that date, and so all assets are potentially eligible for CGT relief. The law does not restrict CGT relief to a particular value or asset in these situations.

      Last modified: 25 Jan 2019QC 57803