Transfer to a beneficiary of a resulting trust
- The items listed below are not links. They indicate where you are in this process.
Start
Declaration of trust
Concessional duty
Consideration
Company
Incorporation
Intention
Purchase money
Conclusion
No concession
A transfer of dutiable property is normally liable to full duty based on the dutiable value of the property.
However under section 55 (1)(b) duty of $50 is payable on:
a transfer of dutiable property from an apparent purchaser to the real purchaser if:
(i) the dutiable property is property, or part of the property, vested in the apparent purchaser upon trust for the real purchaser, and
(ii) the real purchaser provided the money for the purchase of the dutiable property and for any improvements made to the dutiable property after purchase.
Money provided by a person other than the real purchaser is taken to have been provided by the real purchaser if the Chief Commissioner is satisfied that the money was provided as a loan and has been or will be repaid by the real purchaser.
It does not matter whether there has been a change in legal description of the dutiable property between the purchase of the property by the apparent purchaser and the transfer to the real purchaser, the provisions of Section 55 (1)(b) will still have application.
Select the start button below to find out if concessional duty applies in this instance.
More information
- Duties Act 1997 - Section 8(1) 'Imposition of duty on certain transactions concerning dutiable property'
- Duties Act 1997 - Section 11(1) 'What is dutiable property?'
- Duties Act 1997 - Section 55(1)(a) 'A declaration of trust made by an apparent purchaser in respect of identified dutiable property'
- Duties Act 1997 - Section 55(1)(b) 'A transfer of dutiable property from an apparent purchaser to the real purchaser'
- Revenue Ruling DUT 30
