Collectables and personal use assets

hiho · Sep 10, 2015

Just wanted to point this out with 2016 fast approaching, some key take outs that may effect your storage and maintenance of PM's

Definition of collectables and personal use assets

Collectables and personal use assets are:
coins, medallions or bank notes
coins and banknotes are collectables if their value exceeds their face value
bullion coins are collectables if their value exceeds their face value and they are traded at a price above the spot price of their metal content
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Insurance

Collectables and personal use assets purchased by the fund must be insured in the name of the fund within seven days of the purchase.

As part of the decision to invest in collectables and personal use assets, you need to consider the availability and cost of insurance. If your fund has made the investment and you find you can't obtain insurance, contact both your fund's SMSF auditor and the ATO to try to rectify the situation.

Your fund's collectables and personal use assets may be insured under separate policies or collectively under the one policy, but it must be in the name of the fund. You can't, for example, insure the assets as part of a trustee's home and contents insurance.

If you acquired a collectable or personal use asset prior to 1 July 2011, you must insure it in the name of the fund prior to 1 July 2016 to comply with the rules.
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Selling

Collectables and personal use assets can be sold to a related party provided the sale is at market price as determined by a qualified, independent valuer.

A valuer is qualified either through holding formal valuation qualifications or by being considered to have specific knowledge, experience and judgment by their particular professional community.
A valuer is independent if they are independent of the interests of the fund. This means the valuer should not be a member of the fund or a related party of the fund (for example, an investment partner).
If your fund acquired the collectable or personal use asset before 1 July 2011 and sells it before 1 July 2016, the transaction does not need to be supported by a valuation determined by a qualified independent valuer. However, the transaction must still take place on arm's length terms.
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https://www.ato.gov.au/Super/Self-m...stments/Collectables-and-personal-use-assets/

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Collectables and personal use assets

hiho Active Member Silver Stacker

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Collectables and personal use assets

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