Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 5/10)
Character Range: 219256–222455

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 (cancellation of shares in a holding company);

                  * sections 159GZZZQ and 159GZZZS (buy‑backs of shares);

                  * sections 401, 422, 423 and 461 (CFC's);

                  * section 613 (foreign investment funds).

[This is the end of the Guide]

General rules

116‑20  General rules about capital proceeds

 (1) The capital proceeds from a *CGT event are the total of:

 (a) the money you have received, or are entitled to receive, in respect of the event happening; and

 (b) the market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).

Note 1: The timing rules for each event are in Division 104.

Note 2: In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103‑10.

Note 3: If you dispose of shares in a buy‑back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936.

 (2) This table sets out what the capital proceeds from *CGT events F1, F2 and H2 are:

General rules about capital proceeds
Event number                          Description of event:
                                                                                         The capital proceeds are:
F1                                    Granting, renewing or extending a lease            Any premium paid or payable to you for the grant, renewal or extension
F2                                    Granting, renewing or extending a long‑term lease  The greatest of:

                                                                                         (a) the market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and

                                                                                         (b) what would have been that market value if you had not granted, renewed or extended the lease; and

                                                                                         (c) any premium paid or payable to you for the grant, renewal or extension
H2                                    Receipt for event relating to a CGT asset          The money or other consideration you received, or are entitled to receive, because of the act, transaction or event

 (3) In working out the market value of the property the subject of the grant, renewal or extension of a long‑term lease:

 (a) include the market value of any building, part of a building, structure or improvement that is treated as a separate *CGT asset from the property; and

 (b) disregard any *plant for which the lessor has deducted or can deduct an amount for depreciation under this Act.

Note: Subdivision 108‑D sets out when a building, structure or improvement is treated as a separate CGT asset.

 (4) In working out the amount of any premium