sec.63What is the value of a trust acquisition or trust surrender

### sec.63 What is the value of a trust acquisition or trust surrender Subject to subsections (6) to (8) , the value of a trust acquisition or trust surrender is the total of the amounts worked out by applying the beneficiary’s trust interest to the unencumbered value, when the liability for transfer duty arises, of— the dutiable property held by the trust (the relevant trust ); and any indirect interest in dutiable property held by the relevant trust. Under section 52 (1) , dutiable property includes contracted property. Also, under section 52 (1A) , the relevant trust may be taken to hold an indirect interest in dutiable property through a trust interest that is the subject of a purchase or sale agreement. For subsection (1) , the beneficiary’s trust interest for a trust surrender is the beneficiary’s trust interest immediately before the surrender. For subsection (1) (b) , the unencumbered value of an indirect interest under section 58 (a) of the relevant trust is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the relevant trust has a trust or partnership interest, the trust or partnership interest of the relevant trust in that entity. For subsection (1) (b) , the unencumbered value of an indirect interest under section 58 (b) of the relevant trust is the amount worked out by— first applying to the unencumbered value of the dutiable property held by the ultimate entity, the trust or partnership interest of the trust or partnership (the last beneficiary or partner ) that is a beneficiary or partner of the ultimate entity; and applying to the amount worked out under paragraph (a) , and the unencumbered value of any dutiable property held by the last beneficiary or partner, the trust or partnership interest of the next trust or partnership in the series of trusts or partnerships that is a beneficiary or partner of the last beneficiary or partner; and applying the calculation in paragraph (b) for each of the other trusts or partnerships in the series until the first entity’s trust interest or partnership interest is used in the calculation; and applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the trust or partnership interest of the relevant trust. Schedule 4 contains an example of how the value of a trust acquisition is worked out. For determining the value of a beneficiary’s trust acquisition that is an increase in the beneficiary’s trust interest, other than a majority trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest. Subsection (8) applies to a majority trust acquisition that is an increase in a beneficiary’s trust interest (the relevant trust acquisition ) that has happened in the following circumstances— the trust interest of the beneficiary and related persons of the beneficiary was 50% or more immediately before the relevant trust acquisition; transfer duty was previously paid for a majority trust acquisition in the trust made by the beneficiary or related persons; since the majority trust acquisition mentioned in paragraph (b) , no other related person of the beneficiary has made a trust acquisition in the trust. For determining the value of the beneficiary’s trust acquisition that is the relevant trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest. s 63 amd 2006 No. 34 s 4 ; 2010 No. 11 s 11 (sec.63-ssec.1) Subject to subsections (6) to (8) , the value of a trust acquisition or trust surrender is the total of the amounts worked out by applying the beneficiary’s trust interest to the unencumbered value, when the liability for transfer duty arises, of— the dutiable property held by the trust (the relevant trust ); and any indirect interest in dutiable property held by the relevant trust. Under section 52 (1) , dutiable property includes contracted property. Also, under section 52 (1A) , the relevant trust may be taken to hold an indirect interest in dutiable property through a trust interest that is the subject of a purchase or sale agreement. (sec.63-ssec.2) For subsection (1) , the beneficiary’s trust interest for a trust surrender is the beneficiary’s trust interest immediately before the surrender. (sec.63-ssec.3) For subsection (1) (b) , the unencumbered value of an indirect interest under section 58 (a) of the relevant trust is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the relevant trust has a trust or partnership interest, the trust or partnership interest of the relevant trust in that entity. (sec.63-ssec.4) For subsection (1) (b) , the unencumbered value of an indirect interest under section 58 (b) of the relevant trust is the amount worked out by— first applying to the unencumbered value of the dutiable property held by the ultimate entity, the trust or partnership interest of the trust or partnership (the last beneficiary or partner ) that is a beneficiary or partner of the ultimate entity; and applying to the amount worked out under paragraph (a) , and the unencumbered value of any dutiable property held by the last beneficiary or partner, the trust or partnership interest of the next trust or partnership in the series of trusts or partnerships that is a beneficiary or partner of the last beneficiary or partner; and applying the calculation in paragraph (b) for each of the other trusts or partnerships in the series until the first entity’s trust interest or partnership interest is used in the calculation; and applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the trust or partnership interest of the relevant trust. (sec.63-ssec.5) Schedule 4 contains an example of how the value of a trust acquisition is worked out. (sec.63-ssec.6) For determining the value of a beneficiary’s trust acquisition that is an increase in the beneficiary’s trust interest, other than a majority trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest. (sec.63-ssec.7) Subsection (8) applies to a majority trust acquisition that is an increase in a beneficiary’s trust interest (the relevant trust acquisition ) that has happened in the following circumstances— the trust interest of the beneficiary and related persons of the beneficiary was 50% or more immediately before the relevant trust acquisition; transfer duty was previously paid for a majority trust acquisition in the trust made by the beneficiary or related persons; since the majority trust acquisition mentioned in paragraph (b) , no other related person of the beneficiary has made a trust acquisition in the trust. (sec.63-ssec.8) For determining the value of the beneficiary’s trust acquisition that is the relevant trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest. - (a) the dutiable property held by the trust (the relevant trust ); and - (b) any indirect interest in dutiable property held by the relevant trust. - (a) first applying to the unencumbered value of the dutiable property held by the ultimate entity, the trust or partnership interest of the trust or partnership (the last beneficiary or partner ) that is a beneficiary or partner of the ultimate entity; and - (b) applying to the amount worked out under paragraph (a) , and the unencumbered value of any dutiable property held by the last beneficiary or partner, the trust or partnership interest of the next trust or partnership in the series of trusts or partnerships that is a beneficiary or partner of the last beneficiary or partner; and - (c) applying the calculation in paragraph (b) for each of the other trusts or partnerships in the series until the first entity’s trust interest or partnership interest is used in the calculation; and - (d) applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the trust or partnership interest of the relevant trust. - (a) the trust interest of the beneficiary and related persons of the beneficiary was 50% or more immediately before the relevant trust acquisition; - (b) transfer duty was previously paid for a majority trust acquisition in the trust made by the beneficiary or related persons; - (c) since the majority trust acquisition mentioned in paragraph (b) , no other related person of the beneficiary has made a trust acquisition in the trust.