Veyron Wealth Group

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Buy Property In A Super Fund

Why would I buy property in a super fund?

One consideration for most property investors is Capital Gains Tax (CGT).

Individuals can be taxed up to a maximum rate of 46.5% on Capital Gains, or if the asset is held over 12 months, the tax is reduced to 23.25%.

In contrast, Capital Gains in super are taxed at a maximum of 15% tax, whilst if the asset is held over 12 months, the tax is reduced to 10%.

Furthermore, in pension phase a super fund will pay zero Capital Gains Tax.

This could potentially save you ten’s to hundreds of thousands of dollars. Consequently in pension phase, your Super Property Portfolio can become a Super Tax Free Property Portfolio.*

Commercial Property and SMSFs

One question we are often asked is, “can I transfer my existing residential investment property into a SMSF?” and unfortunately the answer is no. There is however an exemption allowing the transfer of an existing commercial property into a SMSF.

Now depending on the circumstances with a commercial property transfer, we may be able to eliminate some or all of the CGT & in NSW, we may be able to reduce stamp duty to nominal $50.

 Potential Tax Free Property Portfolio

Buying Commercial Property and SMSFs

* A Tax Free Property Portfolio is assuming the client is over age 60, is retired and in pension phase
# after meeting a condition of release
^ subject to certain conditions
~ Leveraging can increase returns, but can also increase risk