Time is Running Out For SMSF Collectables and Personal Use Assets
Time is running out for SMSF’s that hold artwork and collectable assets.
The transitional arrangements for funds that held artwork and collectables before 1 July 2011 will cease on 30 June 2016.
This means that an SMSF that holds artwork and collectables must adhere to new rules from June 2016
The New Self Managed Super Fund Rules
- You cannot lease artwork or collectables to a related party
- The asset cannot be stored in the private home of a related party, but it can be stored in premises owned by a related party as long as there is no leasing arrangement and they are not on display
- The trustees must keep records of where the asset is stored and include reasons why the asset is stored where it is.
- The trustees must ensure the asset is adequately insured in the name of the fund within 7 days of purchase.
- Members must not personally use the asset.
- Trustees must dispose of the asset at market value. Market value must be determined by a qualified independent valuer.
Failure to comply could result in hefty penalties for the Trustees. Contact KK Partners for more information