Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121as:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AS (pt 3/7)
Character Range: 1060086–1068082

share, or an interest in such a share;
                                                                                                                                                                                                                                                                                                                                                                                   then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal:
                                                                                                                                                                                                                                                                                                                                                                                     (c) for the purposes of applying section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997, the consideration for the acquisition of all of the demutualisation original shares to be taken into account under that section is taken to consist of both:
                                                                                                                                                                                                                                                                                                                                                                                       (i) if the disposal and all previous disposals of the demutualisation original shares and the non‑demutualisation bonus shares, or interests in them, take place after the demutualisation listing day—the amount worked out using the formula:

                                                                                                                                                                                                                                                                                                                                                                                       ; and
                                                                                                                                                                                                                                                                                                                                                                                       (ii) if subparagraph (i) does not apply—the amount worked out using the formula:

                                                                                                                                                                                                                                                                                                                                                                                        ; and

                                                                                                                                                                                                                                                                                                                                                                                       (iii) any consideration actually paid or given for the acquisition of the share or interest disposed of; and
                                                                                                                                                                                                                                                                                                                                                                                     (d) if the disposal is of a demutualisation original share or an interest in such a share, the disposer is taken:
                                                                                                                                                                                                                                                                                                                                                                                       (i) to have paid the amount in subparagraph (c)(i) or (ii) on the demutualisation resolution day and the amount in subparagraph (c)(iii) when it was actually paid; and
                                                                                                                                                                                                                                                                                                                                                                                       (ii) to have acquired the share or interest on the demutualisation resolution day.
  6 Demutualisation method 7:
   After the issue of the shares (each of which is a demutualisation share) in the mutual insurance company and the mutual affiliate company as mentioned in paragraph 121AL(1)(b), the holding company (the disposer) disposes of an asset consisting of:                                                                                                                        1. A capital loss that the disposer makes from the disposal of the demutualisation share or interest in such a share is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table).
    (a) a demutualisation share, or an interest in such a share; or                                                                                                                                                                                                                                                                                                               2. If the disposal is of a demutualisation share (other than a demutualisation original share) or an interest in such a share then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, the disposer is taken:
    (b) another share (a non‑demutualisation bonus share) in the mutual insurance company or the mutual affiliate company, or an interest in such a share, where the share is a bonus share mentioned in section 130‑20 (about bonus shares) of the Income Tax Assessment Act 1997 and any of the demutualisation shares are the original shares mentioned in that section.          (a) to have paid as consideration for the acquisition of the share or interest both:
                                                                                                                                                                                                                                                                                                                                                                                       (i) the amount worked out using the formula:
                                                                                                                                                                                                                                                                                                                                                                                       ; and
                                                                                                                                                                                                                                                                                                                                                                                       (ii) any consideration actually paid or