Tax deferred income arises from favourable tax timing differences including building allowances, depreciation allowances and the write-off over five years of the Trust’s equity raising costs. Tax deferred income is not ordinarily included in a Unit Holder’s assessable income. However, it may give rise to a capital gain to the extent that the total tax deferred Distributions during the period of ownership of a Unit exceeds the capital gains tax (‘CGT’) cost base of the Unit. When and if this occurs, the excess will give rise to a taxable capital gain to the Unit Holder. The amount of any capital gain is taxable to the Unit Holder subject to any CGT discount. This also means that once the CGT cost base of the Units is reduced to nil all future tax deferred Distributions will also give rise to taxable capital gains. In addition, where tax deferred Distributions reduce the cost base of a Unit any subsequent capital gain on the sale of that Unit will be calculated by reference to the reduced cost base of the Unit and not the original cost.