In specie transfers

In specie transfers

In specie transfers

Mentor Wrap offers a dedicated in specie service that allows you to seamlessly move and consolidate accounts under the platform by transferring managed funds or shares into IDPS, Superannuation and Pension accounts without selling the underlying investment.

Benefits of in specie transfers

The benefits of carrying out an in specie transfer include:

  • 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.

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:

  • 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.

We suggest that advisers or their clients seek specific tax advice with regard to their specific circumstances.