ATO sounds warning to super funds with ‘collectables’
The ATO is warning trustees of SMSFs who hold investments in collectables* or personal-use assets*, acquired before 1 July 2011, that time is running out for those items to be transferred out of the fund under the old rules.
Basically, collectables and personal use assets are things like artworks, jewellery, vehicles, boats and wine. Investments in such items must be made for genuine retirement purposes, not to provide any present-day benefit.
From 1 July 2011, investments in collectables and personal-use assets must have a qualified independent valuation if they are transferred to a related party.
However, items acquired before 1 July 2011 can be transferred to a related party, without a qualified independent valuation, provided the transfer takes place before 1 July 2016, and the transaction is made on an arm’s length basis.
Again, if any client wishes to take advantage of this window, they should contact us very soon.