Professionals combine efforts for CGT

The complexities of identifying and applying capital gains tax (CGT) relief for SMSFs has resulted in professionals working together to ensure their clients did not miss out on the one-off tax concession, according to BT Advice Technical.

“Advisers are looking to get the best possible outcome ahead of 30 June and are proactively engaging with product providers and administrators to make this happen,” BT Advice Technical consultant Tim Howard explained.

“For SMSF clients in particular, we’re seeing a trend to collaboration between advisers, accountants and administrators to ensure no one misses the opportunity to apply CGT relief.”

The CGT relief measures are special one-off tax concessions available to certain super fund members who may be adversely affected in two ways: by complying with the $1.6 million transfer balance cap, or by changes to the tax treatment of transition to retirement pensions.

Howard reminded advisers that there were a few things to keep in mind with the tax concession, including that CGT relief is not automatically applied and that it is up to the client to choose, where eligible, the investments on which to apply the relief.

BT Financial Group’s Advice Technical division reported that for the March quarter, CGT was the top query it received from advisers, followed by enquiries around superannuation contributions and the work test rules.

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