IFM10250 | Exempt unauthorised unit trust (EUUT) expenses

An EUUT is entitled to tax relief for expenses that are deductible in arriving at an amount of income arising. For example, an EUUT carrying on a property rental business is entitled to tax relief on expenses deductible from rental income.

An EUUT is not entitled to tax relief for investment management services or fees paid to the trustees, or for general expenses.

The terms of the trust deed may permit such fees and general expenses to be deducted from the amount available for distribution or to be paid by the unit holders. In that way the cost of such fees and general expenses is effectively passed on to unit holders.