So the 30% CGT when you sell as a company, what would it be under a trust?
First, the CGT discount applies which means
50% of the gain is not assessed for tax.
The remaining 50% will be taxed at each
beneficiaries marginal rate.
eg. B1 is on %30 rate. Half of her distribution
is not assessed. The other half is assessed at
30%, meaning she only effectively pays 15% on
her distribution.
B2 is on 47%. Which means his distribution is
effectively taxed at 23.5%.
On the other hand, your client’s structure means
all sales are taxed at 30%. The CGT discount
doesn’t apply.
Rob O. QLD.
