I have a client currently operating under a company structure with different classes of shares, for income streaming purposes. We want to change this to a unit trust, effective from 1 July, with units in the same proportions and with the same effect as the current share structure. Is this possible? If so, what information is needed on the application form?
A company cannot simply be converted to a unit trust. A unit trust would need to be set up and the company's assets transferred to it.
We can set up a new unit trust, but as to the effects of this (i.e., transferring all of the assets of the company to the unit trust, for example) and whether this is even a good idea (taking CGT, stamp duty, etc, into account) we can't help with.
Therefore, we can set up the unit trust, but what you do with the trust once it's set up is up to you. You may want to log a Call with the NTAA Tax Team if you want to talk to someone about the tax effects of this restructure (freecall 1800 808 105).