The Finance Act 2021 has paved the way for rich families to transfer property to trusts as well as create family trusts by exempting income tax on registered family trusts.
The Act has now exempted from income tax property, including investment shares, which is transferred or sold for the purpose of transferring the title or the proceeds into a registered family trust, the income or principal sum of a registered family trust and any capital gains relating to the transfer of title of immovable property to a family trust.
An analysis of the Finance Act 2021 by audit firm KPMG asserts that the move will encourage more and more people to register family trusts for purposes of succession without exposure to adverse tax consequences.
The new changes took effect on July 1st, 2021.
