Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 27/40)
Character Range: 1889240–1891843

Subdivision 152‑E: CGT event J5
 (1) CGT event J5 happens if you choose a small business roll‑over under Subdivision 152‑E for a *CGT event that happens in relation to a *CGT asset in an income year and, by the end of the *replacement asset period:
 (a) you have not *acquired a replacement asset (the replacement asset), and have not incurred *fourth element expenditure in relation to a CGT asset (also the replacement asset); or
 (b) the replacement asset does not satisfy the conditions set out in subsection (2).
Note: You do not have to satisfy the basic conditions in Subdivision 152‑A for the gain in relation to CGT event J5 (see subsection 152‑305(4)).
 (2) The conditions are:
 (a) the replacement asset must be your *active asset; and
 (b) if the replacement asset is a *share in a company or an interest in a trust:
 (i) you, or an entity *connected with you, must be a *CGT concession stakeholder in the company or trust; or
 (ii) CGT concession stakeholders in the company or trust must have a *small business participation percentage in you of at least 90%.
Example: Joseph owns 50% of the shares in Company A and Company B. He is therefore a CGT concession stakeholder in the companies: see section 152‑60. The companies are connected with Joseph (see section 328‑125) because he controls both of them.
 Company A owns land which it leases to Joseph for use in a business. It sells the land at a profit and buys shares in Company B.
 Subsection (2) is satisfied for the shares because Joseph is connected with Company A and is a CGT concession stakeholder in Company B.
 (3) The time of the event is at the end of the *replacement asset period.
 (4) You make a capital gain equal to the amount of the *capital gain that you disregarded under Subdivision 152‑E.
 (5) The *replacement asset period may be modified or extended as mentioned in section 104‑190.

104‑198  Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6
 (1) CGT event J6 happens if you choose a small business roll‑over under Subdivision 152‑E for a *CGT event that happens in relation to a *CGT asset in an income year and:
 (a) by the end of the *replacement asset period, you have done either or both of the following:
 (i) *acquired a replacement asset (the replacement asset);
 (ii) incurred *fourth element expenditure in relation to a CGT asset (also the replacement asset); and
 (b) at the end of the replacement asset period, the replacement asset is your *active asset; and
 (c) if the replacement asset is a