The trustee is NOT an Australian Resident. The Family Trust still own the property and no change in shares, or beneficiaries of the trust. it is purely a change of trustee
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Hi @VictoriaP,
A change of trustee on its own doesn’t trigger capital gains tax (CGT) and doesn’t require a clearance certificate.
CGT applies when the real owner of an asset changes. In this case, the trust still owns the property, and there’s no change to beneficiaries or their interests. The change is only to the trustee’s name. Because of this, no CGT is triggered.
A clearance certificate is only needed when the property is sold, not when the trustee changes.
Even though the trustee is not an Australian resident, the trust may still be an Australian resident trust if it is mainly managed and controlled in Australia. Trustee residency alone doesn’t decide this.
If the trust is found to be a foreign resident trust, foreign resident CGT withholding would apply when the property is sold, and a clearance certificate would not be available.
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Hi @VictoriaP,
A change of trustee on its own doesn’t trigger capital gains tax (CGT) and doesn’t require a clearance certificate.
CGT applies when the real owner of an asset changes. In this case, the trust still owns the property, and there’s no change to beneficiaries or their interests. The change is only to the trustee’s name. Because of this, no CGT is triggered.
A clearance certificate is only needed when the property is sold, not when the trustee changes.
Even though the trustee is not an Australian resident, the trust may still be an Australian resident trust if it is mainly managed and controlled in Australia. Trustee residency alone doesn’t decide this.
If the trust is found to be a foreign resident trust, foreign resident CGT withholding would apply when the property is sold, and a clearance certificate would not be available.
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