Off market transfers to stay in place

We’re pleased to report that in early June the government quietly shelved its plan to ban off-market transfers of listed securities between an SMSF and a related party from 1 July 2013.

This means clients now have more time to contribute shares held in personal names, or other entities, into their SMSFs by completing requisite paperwork without having to sell on market and then re-purchasing with cash in the fund. 

As transferring assets into a super fund entails a change of legal owner the transfer is subject to capital gains tax.  If you have been thinking of making these transfers you no longer need to rush to make the 30 June deadline, but it could make sense to still consider doing so in historically weaker share market months between May and October.

Pleasingly, the proposed new requirement to obtain a qualified independent valuation when transacting with related parties and unlisted assets will also no longer go ahead on 1 July 2013, with the current rules remaining in place.

If you would like advice on how this might affect your personal situation, please don’t hesitate to give us a call.  Our Partner – Wealth Consulting, Michael Rees-Evans CFP®, can be reached on our office number at top right of this page, or by email at michael.rees-evans@lockwood.com.au

Important note: this information is of a general nature and has been prepared without taking account of anyone’s financial situation, objectives or needs. Before making any investment decisions based on the contents you should obtain professional advice.

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