Document ID: chunk:federal_register_of_legislation:C2010C00603:clause:12_8:p2
Version: federal_register_of_legislation:C2010C00603
Segment Type: clause
Provision Reference: sch 12 cl 8 (pt 2/3)
Character Range: 169098–171874

(b) the originating company and recipient company both choose in writing to obtain a roll‑over.

 (2) There is also a roll‑over if the CGT event would have resulted in the originating company making a capital loss and the originating company and recipient company both choose in writing to obtain a roll‑over.

 (3) Any such choice must be made by the later of:
 (a) 12 months after the day on which the Tax Laws Amendment (2004 Measures No. 6) Act 2005 received the Royal Assent; and
 (b) a later day allowed by the Commissioner.

126‑160  Effects of roll‑over

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

 (2) The first element of the cost base of the original asset or the replacement asset for the recipient company is the cost base of the original asset for the originating company just before the time of the CGT event.

 (3) The first element of the reduced cost base of the original asset or the replacement asset for the recipient company is worked out similarly.

 (4) For a case where the originating company creates a CGT asset in the recipient company, 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.

Creating a CGT asset
CGT event             Applicable amount
number
D1                    the incidental costs the originating company incurred that relate to the CGT 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 expenditure the originating company incurred on the grant, renewal or extension of the lease

  The expenditure can include giving property: see section 103‑5 of the Income Tax Assessment Act 1997.

 (5) If the originating company acquired the original asset before 20 September 1985, the recipient company is taken to have acquired the original asset or the replacement asset before that day.

126‑165  References to Subdivision 126‑B of the Income Tax Assessment Act 1997

  A reference in an Act to a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 includes a reference to a roll‑over under this Subdivision.

Example: Examples of the operation of this provision include:

(a) CGT event J1 may happen if the recipient company stops being a 100% subsidiary of a member of a company group after a roll‑over under this Subdivision; and

(b) a tax cost setting amount may be affected under section 705‑50 because of a roll‑over under this Subdivision; and

(c) an allocable cost amount may be affected under section 705‑150 because of a roll‑over under