• Option 3

    Investing in an existing asset held by the main trust

    The trustee of the sub-trust can invest the funds representing the UPE in an existing asset (or in a share of an existing asset) held by the main trust. However, this would generally constitute a disposal of, or part of, the existing asset held by the main trust and an acquisition of the same asset by the sub-trust. Such a transaction may, for example, trigger capital gains tax (CGT) consequences.

      Last modified: 22 Jun 2011QC 24445