Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 13/13)
Character Range: 6117380–6118848

discretionary interests at the joining time; or
                (b) would have been taken into account in working out a *capital gain or *capital loss made by such a member.

           Step 4. Work out how much of the step 1 amount consists of one or more of these:

                (a) an amount settled on the trust directly by the *head company of the *consolidated group (whether or not the group was in existence when the amount or item was settled on the trust);
                (b) an amount settled on the trust directly by any other entity not excluded by subsection (3) (which covers entities that are not independent and unconnected donors to the trust);
                (c) the *market value of an item of property settled on the trust directly by the head company;
                (d) the market value of an item of property settled on the trust directly by any other entity not excluded by subsection (3).

           Step 5. The step 1 amount worked out under section 705‑65 is increased by the lesser of:

                (a) the step 3 amount worked out under this method statement; and
                (b) the step 4 amount worked out under this method statement.
 (3) This subsection excludes these entities for the purposes of step 4 of the method statement in subsection (2):

Entities that are not independent and unconnected donors to the trust
Item                                                                   This entity is excluded: