Do you have a Discretionary Trust? You may need to revisit the terms of your discretionary trust to avoid paying additional taxes!
Discretionary Trusts are now deemed as ‘Foreign Persons’ and will be liable for the surcharge land tax unless the discretionary trust is amended to specifically prevent foreign persons being a beneficiary of the trust.
‘Foreign Persons’ are liable to pay a surcharge land tax (additional 2% of the unimproved value of the land) in addition to their current land tax liabilities. Further, any future purchases through the discretionary trust will attract additional stamp duty at a rate of 8% of the value of the Property.
Act now to avoid paying additional land tax and stamp duty.
Contact our office to discuss the required amendments to your discretionary trust.