Where a new trust is created to hold the asset, SMSF trustees must ensure that the asset is transferred directly to that new trust and that the SMSF does not temporarily obtain title to the asset at that time, otherwise a contravention of the super law will occur. SectionВ 67A explicitly allows re-financing of a borrowing (including any accrued interest) under an arrangement if the new borrowing arrangement is over the acquirable asset from the first arrangement (including an asset from the first arrangement that is a replacement asset under sectionВ 67B of the SISA) and no other acquirable asset. End of example Conditions for refinancing an LRBA Arrangements entered into on or after 7В July 2010 and then refinanced at a later dateДЄn LRBA can be refinanced provided the re-financed arrangement meets the requirements of sectionВ 67A of the SISA. The Commissioner will not treat the LRBA as a new arrangement on this basis alone. On or after 7В July 2010 two new members of the SMSF are admitted as a result of changing family circumstances. There is an LRBA that meets the requirements of former subsectionВ 67(4A) of the SISA entered into by a corporate SMSF trustee and a private company lender before 7В July 2010. There has been a change to the ultimate beneficiaries of the arrangement resulting from selling a structure involving a pre-existing arrangement.

There is a borrowing (drawdown) that is inconsistent with the earlier arrangement вЂ“ for example, borrowing to acquire an asset or class of asset clearly not contemplated under the original arrangement.Arrangements entered into on or after 24В September 2007 and before 7В July 2010, then refinanced on or after 7В July 2010.Can an SMSF trustee refinance a limited recourse borrowing without contravening the super law?.The borrowing under the original arrangement is refinanced вЂ“ refer to.If that change happened after 7В July 2010, the requirements of sectionВ 67A of the SISA apply to the arrangement.Д¬hanges resulting in a new arrangement include: If the parties adopt a change to the terms or conditions of an arrangement (either expressly or by inference) that goes to the root of the arrangement вЂ“ that is, it alters the character of the arrangement in a significant way вЂ“ then there is a new arrangement from that time and the earlier arrangement has come to an end. Other arrangements or products are allowed if they satisfy all of the requirements of the super law. The rules allowing limited recourse borrowing are not limited to investments in instalment warrants traditionally offered by financial institutions where the underlying asset is a listed security. Outstanding LRBA amount for Total superannuation balanceДЄ borrowing is allowed under any arrangement that meets the requirements of the super law, not just financial products marketed as instalment warrants.Д¬onversely, it does not automatically follow that a product marketed as an instalment warrant meets the conditions of the super law.Varying the terms of a limited recourse borrowing.

National sales manager, Deborah Reeves, added: вЂњWeвЂ™re delighted to welcome Samantha to The Nottingham and are excited about the positive impact with brokers we believe she will make. вЂњIвЂ™m dedicated to utilising my skills and experience to help brokers get the best results for their customers, something which IвЂ™m sure will be helped by our wide range of products and positive lending criteria.вЂќ вЂњWhatвЂ™s also great about the building society is the ability for BDMs and brokers to be able to work closely with underwriters, taking a bespoke look at cases and always trying to get a successful outcome where we can. Samantha said: вЂњI was attracted to The Nottingham because of its history of, and desire to, make home ownership achievable for all. It comes just over a month after the building society appointed ex-Coventry Building Society BDM Richard Goodman to support brokers in the East Midlands region.ДЄlso a former Coventry BDM, Samantha previously held the same role with TSB and has been a mortgage adviser with Mortgage Advice Bureau.

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