The ATO is warning trustees of SMSFs who hold investments in collectables* or personal-use assets*, acquired before 1 July 2011, that time is running out for those items to be transferred out of the fund under the old rules.
From 1 July 2011, investments in collectables and personal-use assets must have a qualified independent valuation if they are transferred to a related party.
However, items acquired before 1 July 2011 can be transferred to a related party, without a qualified independent valuation, provided the transfer takes place before 1 July 2016, and the transaction is made on an arm’s length basis.
* Collectables and personal use assets include things like artworks, jewellery, vehicles, boats and wine. Investments in such items must be made for genuine retirement purposes, not to provide any present-day benefit.
If you wish to take advantage of this window, contact us.
