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LTX-Trust-19

This form is used to notify the State Revenue Office of:

  • Nomination of a principal place of residence (PPR) beneficiary of a discretionary trust or unit trust scheme.
  • Nomination of a subsequent PPR beneficiary of a discretionary trust or unit trust.
  • Unit holders, or a change in the unit holders, in a unit trust scheme (unit trust).
  • Beneficial interest, or a change of the beneficial interest, in a fixed trust.

form iconLTX-Trust-19 SmartForm

Explanatory notes

Benefits of notifying the State Revenue Office of beneficiaries/unit holders

Fixed trust

A trustee may avoid the land tax trust surcharge by notifying us of the beneficial interests in the trust. By lodging a notification of beneficial interests, the beneficiary is deemed to be the owner of the land subject to the trust (but not to the exclusion of the trustee) equivalent to their proportional interest in the trust.

The beneficiary’s interest in the trust land will be assessed on an aggregated basis with any other land owned by the beneficiary. A tax deduction in respect of the trust land will be included in the beneficiary’s assessment, where applicable.

In addition, where there is a change in the beneficial interests in a fixed trust, the trustee must notify us within one month of that change.

This notification takes effect for the tax year following the year in which the notification is lodged.

Unit trust

A trustee may avoid the land tax trust surcharge by notifying us of the unit holdings in the trust. By lodging a notification of unit holdings, the unit holder is deemed to be the owner of the land subject to the trust (but not to the exclusion of the trustee) equivalent to the percentage of units held in the trust.

The trust land deemed to be owned by the unit holder will be assessed on an aggregated basis with any other land owned by the unit holder. A tax deduction in respect of the trust land will be included in the unit holder’s assessment (where applicable).

In addition, where there is a change in the unit holdings of a unit trust, the trustee must notify us within one month of that change.

Alternatively, the trustee can nominate a unit holder, who is a natural person, to be the principal place of residence (PPR) beneficiary. The nominated PPR beneficiary, must use and occupy the land subject to the trust as his or her PPR. The trustee will subsequently be assessed on the PPR land at the general rate of land tax on a single-holding basis.

Note: The trustee of a unit trust can notify us of its unit holders or nominate a PPR beneficiary, but cannot do both.

This notification takes effect for the tax year following the year in which the notification is lodged.

Nomination of PPR beneficiary

Discretionary and unit trusts

Benefits of nomination

Land that is owned by the trustee of a discretionary or unit trust will be assessed for land tax at the general rate as if it were the only land held by the trustee where that land is being used and occupied as the PPR of the nominated PPR beneficiary.

The trustee of a unit trust is unable to nominate a PPR beneficiary where a notification of unit holdings is already in force.

A nominated PPR beneficiary remains in force until the nominated PPR beneficiary dies or ceases to use and occupy the land as his or her PPR.

A trust can only nominate one PPR beneficiary at any time.

PPR eligibility

A PPR beneficiary nomination takes effect from:

  • the tax year in which the nomination is lodged where the PPR beneficiary was residing at the property before 31 December in the year prior to the tax year, or 
  • the following tax year if the PPR beneficiary moved into the property during the current tax year.

Requirements for trustees to notify the Commissioner of State Revenue

If the beneficiary ceases to use and occupy the land as their PPR, the trustee of the trust is required to notify us in writing within one month. Failure to do so may constitute a notification default and penalty tax may apply.

Trusts

Discretionary trust

‘Discretionary trust’ means a trust under which the vesting of the whole or any part of the trust property:

  1. is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of the interest to be taken, or both, or
  2. will occur in the event that a discretion conferred under the trust is not exercised, but does not include an excluded trust, a fixed trust or a trust to which a unit scheme relates.
Unit trust scheme

‘Unit trust scheme’ means an arrangement made for the purpose of, or having the effect of, providing facilities for participation by a person, as a beneficiary under a trust, in any profit or income arising from the acquisition, holding, management or disposal of property under a trust but does not include an ‘excluded trust’.

‘Unit’ in a trust scheme means:

  1. a right or interest (whether described as a unit or sub-unit or otherwise) of a beneficiary under the scheme, or
  2. a right to any such right or interest that entitles the beneficiary to participate proportionately with other unit holders in a distribution of the property of the trust on its vesting.