Consolidate accounts with in specie transfers
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Wealthtrac offers a dedicated in specie service that allows you to seamlessly move and consolidate accounts under the platform.
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What is an in specie transfer?
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In specie is the process of transferring managed funds or shares without selling the underlying investment. It allows you and your clients to transfer assets, such as managed funds and listed shares, into IDPS, superannuation and pension accounts.
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Benefits of in specie transfers
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The benefits of carrying out an in specie transfer include:
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- potential savings on buy and sell costs
- being able to remain invested in the market throughout the transfer
- potential savings on capital gains tax (CGT) provided there is no change in beneficial ownership.
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Contributing an asset other than cash into a super fund (an in specie contribution) can reduce or eliminate the tax payable on future investment earnings. However, a CGT event will generally occur when ownership is transferred. When carrying out an in specie transfer, you should take into consideration applicable stamp duty along with the following CGT implications:
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- Some clients may trigger a capital loss, which could be used to offset current or future year capital gains from other assets held in their own name.
- Where a capital gain is made, the client may be able to reduce or eliminate CGT by claiming a portion of the in specie contribution as a tax deduction.
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We suggest that advisers or their clients seek specific tax advice with regards to their specific circumstances.
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