Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_76
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 76
Character Range: 260567–261689

76  Section 118‑27
Repeal the section, substitute:

118‑27  Division 230 financial arrangements
 (1) A *capital gain or *capital loss you make:
 (a) from a *CGT asset; or
 (b) in creating a CGT asset; or
 (c) from the discharge of a liability;
is disregarded if, at the time of the *CGT event, the asset or liability is, or is part of, a *Division 230 financial arrangement.
Note 1: Paragraph (b) is relevant for CGT event D1.
Note 2: Paragraph (c) is relevant for CGT event L7.
 (2) Subsection (1) does not apply to the following:
 (a) a gain or loss that subsection 230‑310(4) (which deals with hedging financial arrangements) provides is to be treated as a *capital gain or *capital loss;
 (b) a loss that is reduced under subsection 230‑465(2), to the extent of that reduction (this is the extent to which the loss is of a capital nature).
 (3) Subsection (1) does not apply if the situation that gives rise to the *CGT event does not result in a gain from the arrangement being included in your assessable income under Division 230, or in a loss from the arrangement entitling you to a deduction under Division 230.