Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/6)
Character Range: 423974–426849

3                        It does not matter what the originating company's residency status is  Not an Australian resident at that time   The asset must have the *necessary connection with Australia just before and just after that time (for a disposal case) and just after that time (for a creation case)

126‑55  When there is a roll‑over

Capital gain or no loss

 (1) There is a roll‑over if:

 (a) the trigger event would have resulted in the originating company making a *capital gain or no *capital loss; and

 (b) the originating company and recipient company both choose to obtain it.

Note: Section 103‑25 sets out when the choice must be made.

Capital loss

 (2) There is also a roll‑over if the trigger event would have resulted in the originating company making a *capital loss, unless the originating company and recipient company make a choice under section 126‑65.

126‑60  Consequences of roll‑over

Consequences for the originating company in all cases

 (1) A *capital gain or *capital loss the originating company makes from the trigger event is disregarded.

Consequences for the recipient company (disposal case)

 (2) For a disposal case, if the originating company *acquired the roll‑over asset on or after 20 September 1985:

 (a) the first element of the asset's *cost base (in the hands of the recipient company) is the asset's cost base (in the hands of the originating company) when the recipient company acquired it; and

 (b) the first element of the asset's *reduced cost base (in the hands of the recipient company) is worked out similarly.

Note: There are special indexation rules for roll‑overs: see Division 114.

 (3) If the originating company *acquired the roll‑over asset before 20 September 1985, the recipient company is taken to have acquired it before that day.

Note: A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.

 (4) If the trigger event involved a *personal use asset of the originating company, the recipient company is taken to have *acquired one.

Note: Capital losses from personal use assets are disregarded: see section 108‑20.

Consequences for the recipient company (creation case)

 (5) For a creation case, the first element of the asset's *cost base (in the hands of the recipient company) is the amount applicable under this table. The first element of its *reduced cost base is worked out similarly.

Creation case
Event No.      Applicable amount
D1             the *incidental costs the originating company incurred that relate to the trigger event
D2             the expenditure the originating company incurred to grant the option
D3             the expenditure the originating company incurred to grant the right
F1             the