Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 4/10)
Character Range: 216828–219519

had been incurred in the quarter in which the CGT event happened.

Division 116—Capital proceeds

Guide to Division 116

116‑1  What this Division is about

      This Division tells you how to work out what the capital proceeds from a CGT event are. You need to know this to work out if you made a capital gain or loss from the event.

Table of sections

116‑5 General rules
116‑10 Modifications to general rules

General rules

116‑20 General rules about capital proceeds

Modifications to general rules

116‑25 Table of modifications to the general rules
116‑30 Market value substitution rule: modification 1
116‑40 Apportionment rule: modification 2
116‑45 Non‑receipt rule: modification 3
116‑50 Repaid rule: modification 4
116‑55 Assumption of liability rule: modification 5

Special rules

116‑65 Disposal of a CGT asset the subject of an option
116‑70 Option requiring both acquisition and disposal
116‑75 Special rule for CGT event C2 happening to a lease
116‑80 Special rule if CGT asset is shares or an interest in a trust
116‑85 Section 47A of 1936 Act applying to rolled‑over asset
116‑95 Company changes residence from an unlisted country

116‑5  General rules

  Section 116‑20 sets out the general rules about capital proceeds. They are relevant to each CGT event that is listed in the table in section 116‑25.

116‑10  Modifications to general rules

 (1) There are 5 modifications to the general rules that may be relevant. The table in section 116‑25 lists which ones may be relevant to each CGT event listed in the table.

Explanation of modifications

 (2) The first is a market value substitution rule. It is relevant if:

 • you receive no capital proceeds from a CGT event; or

 • some or all of the capital proceeds cannot be valued; or

 • you did not deal at arm's length with another entity in connection with the event.

 (3) The second is an apportionment rule. It is relevant if a payment you receive in connection with a transaction relates in part only to a CGT event.

Example: You sell 3 CGT assets for a total of $100,000. The $100,000 needs to be apportioned between the 3 assets.

 (4) The third is a non‑receipt rule. It is relevant if you do not receive, or are not likely to receive, some or all of the capital proceeds from a CGT event.

 (5) The fourth is a repaid rule. It is relevant if you are required to repay some or all of the capital proceeds from a CGT event.

 (6) The fifth is relevant only if another entity assumes a liability in connection with a CGT event.

Note: Also, these provisions of the Income Tax Assessment Act 1936 modify capital proceeds:

                  * sections 159GZZZF and 159GZZZG