Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p38
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 38/40)
Character Range: 1915139–1917743

*taxing events generating a gain that are covered by subsection (1), CGT event K8 happens for each of those taxing events, and you make a separate capital gain for each.

Exceptions
 (5) A *capital gain is disregarded if the *down interest is a *pre‑CGT asset.

104‑255  Carried interests: CGT event K9
 (1) CGT event K9 happens if you become entitled to receive a *payment of a *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP.
 (2) The time of the event is the time you become entitled to receive the *payment.
 (3) You make a capital gain equal to the *capital proceeds from the *CGT event.
Note: You cannot make a capital loss.

Meaning of carried interest
 (4) The carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF is the partner's entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF.
 (5) The carried interest of a *limited partner in a *VCMP is the partner's entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a *general partner.
 (6) The carried interest does not include:
 (a) any part of the partner's entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the *VCLP, *ESVCLP, *AFOF or *VCMP; or
 (b) any part of the partner's entitlement to that distribution that is attributable to the partner's *equity interest in the VCLP, ESVCLP, AFOF or VCMP.

Meaning of payment of carried interest
 (7) Payment, of a *carried interest, includes:
 (a) a payment that is attributable to the carried interest; or
 (b) the giving of property in satisfaction of the carried interest: see section 103‑5; or
 (c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103‑5.

104‑260  Certain short‑term forex realisation gains: CGT event K10
 (1) CGT event K10 happens if:
 (a) you make a *forex realisation gain as a result of forex realisation event 2; and
 (b) item 1 of the table in subsection 775‑70(1) applies.
 (2) The time of the event is when the forex realisation event happens.
 (3) You make a capital gain equal to the *forex realisation gain.
Note: You cannot make a capital loss under CGT event K10. However, if you make a forex realisation loss covered by item 1 of the table in subsection 775‑75(1),