DLS Updates - The End of the Year is Upon Us
As the end of the year is almost upon us, we would like to thank our clients for their support during this unprecedented year.
Before we sign off for 2020, we remind you of the deadline to amend (if required) your Discretionary Trust Deed so that it is not classified as a foreign trust as at 1 January 2021 and to avoid a 2% land tax surcharge and 8% stamp duty surcharge payable in addition to normal land tax and stamp duty charges.
The retrospective effect of The State Revenue Legislation Further Amendment Act 2020 (NSW) means the surcharge could apply to:
• transactions from 21 June 2016 in relation to surcharge duty; and
• 2017 and subsequent land tax years in relation to surcharge land tax.
The transitional arrangement allows trustees to irrevocably amend trust deeds to exclude foreign beneficiaries by 31 December 2020 to ensure the surcharge doesn’t apply from the above effective dates.
Please bear in mind that our offices will be closed from 24 December 2020 and will be reopening on 11 January 2021. As it takes time to review and amend your Discretionary Trust Deed (if required), realistically, there is now only a very short period of time to review whether your discretionary trust requires amendment based on the new foreign surcharge laws in NSW that has retrospective effect.
Please do not leave your instructions too late!!
We wish you all a happy and healthy and safe Christmas and New Year.
It has been a tough year for all of us, but together, with support, we will finish off this year and move into 2021 refreshed, invigorated and with a positive outlook.