Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 7/58)
Character Range: 2317033–2319546

valuation year—the end of the period of 6 months after the end of that valuation year; or
 (ii) if there is more than one valuation year—the end of the period of 6 months after the end of the earliest of those valuation years.
 (2) If subsection (1) applies, work out your *capital gain using the formula:
where:
normal capital gain is what your *capital gain from the *CGT event would be apart from section 118‑407 and this section.
valuation year capital gain is the capital gain you would have made in relation to the *CGT event if the CGT event had happened:
 (a) if there is only one valuation year—at the end of the period of 6 months after the end of that valuation year; or
 (b) if there is more than one valuation year—at the end of the period of 6 months after the end of the earliest of those valuation years.
Work out the capital gain based on what the *capital proceeds would have been, and on other matters relating to the amount of the gain being determined on a reasonable basis, if the CGT event resulting in the gain had happened at the end of that period.
 (3) Despite subsection (2), you are taken not to have a *capital gain, or a *capital loss, from the *CGT event if the amount worked out under the formula in that subsection would be less than zero.
 (4) This subsection applies to any income year that:
 (a) precedes the income year in which the *CGT event happens; but
 (b) does not precede the income year in which the investment was made.
Note: There must always be at least one valuation year, because paragraph 118‑407(1)(d) ensures the CGT event will not happen in the year the investment was made.
 (5) Section 118‑407 does not apply in relation to a *CGT event if this section applies in relation to the CGT event.

118‑410  Exemption for certain foreign venture capital investments through Australian venture capital funds of funds

Gains or losses as a partner in a VCLP or an ESVCLP
 (1) All of your share in a *capital gain or a *capital loss from a *CGT event is disregarded if:
 (a) you are an *eligible venture capital partner in a *limited partnership; and
 (b) the CGT event relates to an *eligible venture capital investment made by a *VCLP, or an *ESVCLP, in which the partnership is a partner; and
 (c) when the investment was made, the partnership was an *Australian venture capital fund of funds that was *unconditionally registered; and
 (d) when the investment was made, the VCLP or ESVCLP was unconditionally registered; and
 (e) at the time of the CGT event, the