Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p43
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 43/59)
Character Range: 2639223–2641908

only original interests. Apply Division 40 to the interests referred to in paragraph (b).
 (3) If you started to *hold all of the pre‑UCA interests before 20 September 1985, each new interest is taken to be 2 separate assets that are both new interests:
 (a) one (which you are taken to have started to hold before that day) representing the extent to which the original interests are pre‑UCA interests; and
 (b) another (which you are taken to have started to hold on or after 1 July 2001) representing the extent to which the original interests are post‑UCA interests.
Apply section 124‑1240 to the new interest referred to in paragraph (a) as if the pre‑UCA interests were the only original interests. Apply Division 40 to the new interest referred to in paragraph (b).
 (4) If you started to *hold one or more of the pre‑UCA interests before 20 September 1985 and one or more of the pre‑UCA interests on or after that day, each new interest is taken to be 3 separate assets that are all new interests:
 (a) one (which you are taken to have started to hold on or after 20 September 1985 and before 1 July 2001) representing the extent to which the original interests that you started to hold on or after 20 September 1985 are pre‑UCA interests; and
 (b) another (which you are taken to have started to hold before 20 September 1985) representing the extent to which the original interests that you started to hold before 20 September 1985 are pre‑UCA interests; and
 (c) another (which you are taken to have started to hold on or after 1 July 2001) representing the extent to which the original interests are post‑UCA interests.
Apply section 124‑1245 to the new interests referred to in paragraphs (a) and (b) as if the pre‑UCA interests were the only original interests. Apply Division 40 to the new interest referred to in paragraph (c).

Division 125—Demerger relief

Table of Subdivisions
 Guide to Division 125
125‑A Object of this Division
125‑B Consequences for owners of interests
125‑C Consequences for members of demerger group
125‑D Public trading trusts
125‑E Miscellaneous

Guide to Division 125

125‑1  What this Division is about

      Entities can obtain CGT relief for a demerger.
      Owners of ownership interests in the head entity of a demerger group can obtain a roll‑over to defer CGT consequences for the CGT events that happen to their interests under the demerger (see Subdivision 125‑B).
      Capital gains and capital losses made by members of the demerger group from certain CGT events that happen under the demerger are disregarded (see Subdivision 125‑C).
Note: Dividend relief is also available: see section 44 of the Income Tax Assessment Act