New Testamentary Trust and Special Disability Trust Codes
This change is about improving the taxation of Testamentary Trusts. The legislation was amended to make sure the tax concessions available to minors relating to income from a testamentary trust only apply in respect of income generated from assets of the deceased estate that are transferred to the testamentary trust (or the proceeds of the disposal or investment of those assets).
The solution implemented for the 2020 Trust Tax Return (T Form) added a new code A, Testamentary trust, to the existing group of codes for the type of trust.
From HandiTax 2021 the codes have been updated - T Form Cover 2021 - Type of Trust -Testamentary trust E.
To allow clients who receive income from a Testamentary Trust to correctly identify that income when completing their tax returns, from 2021, we are adding this code into the corresponding tables in several returns. We have added the new Testamentary Trust code in the following returns:
Examples:
Individual Income Tax Return Supplementary Section - Item 13 ‘Partnerships and trusts’ labels L and U next to the amount fields.
Company Tax Return - Item 6, Calculation of total profit or loss, label E next to the amount field.
SMSF Annual Return - Item 11, Income, label M next to the amount fields.
Trust Tax Return - Item 8, Partnerships and trusts, labels Z and R next to the amount fields.
Partnership Tax Return - Item 8, Partnerships and trusts, labels Z and R next to the amount fields.
