The Secrets of Managed Investment Trusts


Investing in managed investment trusts can be a smart financial move, but understanding the tax implications is crucial. This blog will guide you through the complexities of managed investment trusts, covering topics such as trust income, losses, deductions, and capital gains. Let’s unravel the mysteries surrounding these financial instruments.

Types of Managed Investment Trusts

Managed investment trusts come in various forms, including cash management trusts, money market trusts, mortgage trusts, unit trusts, and managed funds like property trusts, share trusts, and growth trusts. Each type has its unique characteristics, and it’s essential to know the distinctions.

Trust Income and Credits

When dealing with managed investment trusts, you must declare any income or credits received on your tax return. Distribution advice from the trust will provide the necessary details, encompassing income, capital gains, and your share of tax offsets. Discover how to claim credits for tax paid or withheld on trust income, ensuring you accurately report these figures.

Trust Losses

In the event of a trust making an overall loss, understanding the reporting requirements becomes crucial. Learn when you need to report a loss on your tax return and the scenarios in which trust losses are retained within the trust. Explore the intricacies of primary production losses and their implications for your tax reporting.

Trust Income Deductions

Managed investment trusts offer opportunities for tax deductions. Discover which expenses, such as management fees, specialist journals, and interest on borrowed funds, can be claimed. Uncover special rules for prepayments and understand the limitations on certain deductions, ensuring you make the most of available tax benefits.

Capital Gains from a Trust

Distributions from trusts can include capital gains and non-assessable payments, each with distinct implications for Capital Gains Tax (CGT) purposes. Understand how these distributions affect the cost base of units in a unit trust and the trustee’s role in providing information about CGT discounts and small business 50% active asset reduction.


Investing in managed investment trusts can be a rewarding venture, but it’s crucial to navigate the tax landscape effectively. Whether dealing with trust income, losses, deductions, or capital gains, a comprehensive understanding is key to optimising your financial outcomes. Stay informed, seek professional advice when needed, and make informed decisions to make the most of your investments in managed funds.