There are a number of substantial tax provisions which practitioners regularly rely upon which work on the presumption that they're dealing with a "fixed" trust. But are they? The common example is a unit trust which is generally assumed to be a fixed trust. Often it is not the case. This paper covers:
- what is a fixed trust?
- what is a ‘vested and indefeasible interest?'
- when do you need a fixed trust?
- trust losses
- CGT events affecting trusts
- CGT scrip for scrip rollover
- company ownership interests and losses
- amendments to make a trust fixed - is it a resettlement?
- mining hybrid trust gems or creating false leads.