CGT relief
The new rules include CGT relief for those who will be required to unwind existing pension arrangements.
The CGT provisions effectively deem a disposal and reacquisition as at 30 June 2017, meaning any unrealised gains on existing pension assets will generally not be taxed on a disposal following commencement of the new rules.
We expect trustees will generally elect to apply the CGT relief where available, although there are limited circumstances where you might choose not to apply relief. The CGT relief needs to be applied at the time of lodging the 2017 tax return and there is no election required at this point in time or on 30 June 2017.
Being in a position to determine asset values at 30 June 2017 will be necessary. For unlisted investments, a valuation at 30 June 2017 will need to be obtained.
The CGT relief provisions are particularly complex, requiring consideration on an asset by asset basis and written elections within prescribed time limits to be done. We will advise you further on a case by case basis for those affected clients to determine the best approach for your circumstances.
