Tax Savings Strategy 220 | Non-Geared Unit Trust
- Enables a SMSF with limited funds to co-invest in large property purchases.
- The SMSF can purchase additional units in the NGUT from related parties (at market value).
- The NGUT has flexibility in issuing and redeeming units.
- Unlike a bare trust, there are no restrictions on undertaking a property development.
- Borrowing costs are lower than for limited recourse borrowing arrangements as the non SMSF members can borrow directly from the bank to purchase units in the unit trust.
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
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