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Trusts and dividends

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john_1
Super Contributor
If one buys shares in a trust... do the dividends remain tax free if paid out to the benaficaries or are they now subject to income tax..please advise...all relavent inputs only...
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12 REPLIES 12
watchmefly
Occasional Contributor
the nature of the income remains the same and is still a dividend it does not change its source so yes tax free
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john_1
Super Contributor
Is there any reason why having a Long term holding would not suit a trust...IF you buy and sell in a trust would it occur a 20% CGT every time?
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Shaun_Siddall
Super Contributor
Nature of income is important - if interest is earned in the trust and distributed it is taxed as interest etc.
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john_1
Super Contributor
Shaun i know you know this stuff please drop me a mail to [email protected] with a phone number. I would be interested in your oppinion.
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richardw
Super Contributor
JohnQ? Jon Qwelane? Where is my rifle. ;)
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john_1
Super Contributor
I might sugest its were ever you left it? No I am not quelane
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Not applicable
Depends on trust deed, but capital gains can also be distrubuted to the beneficiaries and not be taxed in the trust. You can then use the benefeciaries annual CGT exemption and possible not pay any CGT.
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john_1
Super Contributor
What are the pros and cons..I am a novice in this department so go wild.
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john_1
Super Contributor
So if Exchange controll is so damb water tight how is it that every man and his dog has an offshore trust and most tax firms have a team of okes who do it full time.
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ACEP_
Regular Contributor
Finally, I note SA Patents need not be reg wrld wide, b4 protection kicks in? Wener, John?
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ACEP_
Regular Contributor
Apologies, Werner, Michael Shumacker? I cuuda guessed!
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john_1
Super Contributor
yes that is true.. The moment you file a provisional a date in time is set. Nobody will be able to file after that date. However that does not mean that you will get the patent as overseas patent are given rigourous seaches and inspections. The issue of novel is very very broad.
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