Beneficiary Interest Claim Not Deductible


In a  recent Administration Appeals Tribunal decision  the AAT has reconfirmed the long-held principle that a beneficiary of a trust is unable to claim interest on borrowings in their own name  against trust distributions they receive (Chadbourne v FC of T).

If you intend to borrow money to make an investment through a trust, please contact our office first so we can review the proposed borrowing to ensure it is correctly structured so you will be able to claim a tax deduction on the interest paid