Charging of duty on acquisitions made by trustees
Beneficial owner – meaning
If a person who acquires or holds an interest in a landholder acquires or holds that interest as bare trustee for another person, the other person is a beneficial owner, of that interest in the landholder
If a person who is a beneficial owner of an interest in a landholder (whether as a result of the above or as a result of one or more applications of this Part) holds that interest as bare trustee for another person, that other person is also a beneficial owner of that interest in the landholder.
The ultimate beneficial owner of an interest in a landholder is any beneficial owner of the interest in the landholder who does not hold that interest as bare trustee for another person
Beneficial owners liable for duty on acquisitions in landholders applies from 1 December 2009
Any interest in a landholder that is acquired or held by a person (the legal owner) as bare trustee for another person is taken, for the purposes of the landholder Chapter, to have been acquired by, or to be held by, the ultimate beneficial owner of the interest in the landholder, rather than the legal owner.
Accordingly, the ultimate beneficial owner of an interest acquired by the legal owner will be liable to lodge an acquisition statement, and to pay any duty chargeable under the landholder Chapter, in respect of any relevant acquisition made as a result of that acquisition by the legal owner.
Note: For example, A acquires an interest in a landholder as bare trustee for B. A is the legal owner and B is a beneficial owner of the interest in the landholder. B holds that interest as bare trustee for C. As a result, C is also a beneficial owner of the interest in the landholder acquired by A. If C does not hold the interest as bare trustee for another person, C is the ultimate beneficial owner of the interest and will be liable for any duty chargeable on the acquisition.
For the purpose of determining whether an acquisition is a relevant acquisition, the person who acquires or holds an interest in a landholder is the ultimate beneficial owner of the interest, rather than the legal owner.
That is, the acquisition is to be aggregated with other interests held by the ultimate beneficial owner of the interest or an associated person of the ultimate beneficial owner of the interest, rather than with other interests held by the legal owner or associated persons of the legal owner
Transitional provisions relating to beneficial owners
If the ultimate beneficial owner of an interest in a landholder acquires an interest in a landholder on or after the commencement of the amendments (1 December 2009), an acquisition of an interest in a landholder made before that commencement (a pre-commencement acquisition) that would have been treated as an acquisition made by the ultimate beneficial owner of the interest or an associated person if the landholder liability amendments had been in force at the time that the acquisition was made is to be counted for the purpose of determining whether a relevant acquisition has been made.
For that purpose, such a pre-commencement acquisition is treated as an acquisition made by the ultimate beneficial owner of the interest or an associated person (as the case requires) and must be disclosed in an acquisition statement by the ultimate beneficial owner of the interest.
However, a pre-commencement acquisition disclosed in an acquisition statement by the ultimate beneficial owner of an interest in a landholder is an exempt acquisition if, but for the above, the acquisition would not have to be disclosed in that statement.
