Hi all,
Is it possible avoid CGT on the sale of a NZ inv property by setting up a trust in NZ? If the beneficaries are Aust residents, is CGT applicable due to the flow through nature of a trust?
I guess if this is possible, it may be worth while for an investor already holding IP as an individual, to transfer ownership to the trustee – as there is no stamp duty payable.
Bryce
CGT is not payable in New Zealand.
CGT is incurred in Australia when capital gains originate offshore.
— Michael
Michael
I don’t quite understand. If an Australian sells an IP in NZ and makes a profit, do they pay CGT in Australia?
Judi
To clarify.. if the captial gain/profit is brought back to Australia then CGT can apply.
A qualified tax accountant will provide information specific to the case in point.
— Michael
As a general rule Australia asserts jurisdiction to tax its residents on their foreign source income including CGT. Interposition of non-resident companies or trusts will raise a number of other complex issues which would need specific professional advice.
Hey what if in the year you sold all your NZ assets you moved there for a holiday and became a NZ tax payer, then you wouldn’t pay CGT ?? (not my stategy).
and Bryce with a trust all the profit must be disributed at the end of each financial year so the tax would need to be paid by the benificiaries.regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Thanks for your comments folks, that gives me a better understanding. Intersting concept with the NZ holiday Westan.
Bryce
You must be logged in to reply to this topic. If you don't have an account, you can register here.
