Managed investment trusts: election into capital treatment

If you're the trustee of a managed investment trust (MIT), this information will help you work out whether you're eligible to make a capital treatment election and how to make an election.

The MIT capital treatment rules allow the trustee of an eligible MIT to choose to apply the capital gains tax (CGT) provisions for the taxation of gains and losses on disposal of certain eligible assets, rather than on revenue account. For the purposes of the MIT capital treatment rules, a disposal also includes ceasing to own, or otherwise realising, the asset.

You must make the election in the first year the trust qualifies as a MIT, and it is irrevocable as long as the MIT remains eligible. If a MIT does not make a capital treatment election in the first year, it will be taxed on revenue account under general tax law principles.

These rules apply to CGT events that happen on or after the start of the 2008–09 income year.

Next steps:

• Eligibility for making a capital treatment election
• Eligible CGT assets
• Making a capital treatment election
• Request for an extension of time to make a capital election
• Amendments to previous years
• Tax consequences of capital elections