How Does CGT Work for Properties Held in a Trust?

Quick Answer

Capital Gains Tax (CGT) for properties held in a trust depends on the type of trust and how income is distributed. Trusts do not pay CGT directly; instead, the gain is distributed to beneficiaries, who pay tax at their marginal rates. The CGT discount may apply if the property is held for more than 12 months. Consult Division 115 of ITAA 1997 for specific rules.