Private ruling: Capital Gains Tax - Trust Resettlement
Date of advice: 2 December 2019
Published: February 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the proposed amendments to the Unit Trust Deed cause CGT event E1 or E2 to happen? | A1: No. It is considered the proposed amendments to the Unit Trust Deed will not cause the Unit Trust to terminate or give rise to a particular asset of the Unit Trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the Trustee to amend as contained in the Unit Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.

Relevant facts and circumstances: By deed dated XX/XX/XXXX (Unit Trust Deed) made by the Trustees and the Unitholder, the Unit Trust was established. The Unit Trust Deed gives the Trustee a wide power of amendment. The Trustee and Unitholder now propose to amend the Unit Trust Deed in order to satisfy the criteria of a "fixed trust" under section 3A(3B) of the Land Management Act NSW 1956 .

Relevant legislative provisions: Section 104-55 of the Income Tax Assessment Act 1997 | Section 104-60 of the Income Tax Assessment Act 1997