Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/10)
Character Range: 335689–338381

partner's interests in the asset before 20 September 1985, the partner is taken to have acquired the *shares before that day.

122‑160  Disposal of both post‑CGT and pre‑CGT interests

 (1) If a partner *acquired some of the partner's interests in the asset on or after 20 September 1985 and some before that day, the partner is taken to have acquired a whole number of the *shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares the partner acquires) does not exceed:

 • the market value of the interests in the asset that the partner acquired before that day;

expressed as a percentage of:

 • the total of the market values of all the partner's interests in the asset.

 (2) The first element of each other *share's *cost base is the sum of the cost bases of the partner's interests that the partner *acquired on or after that day (less any liabilities the company undertakes to discharge in respect of all of those interests) divided by the number of the other shares.

Note: There are special indexation rules for roll‑overs: see Division 114.

 (3) The first element of each other *share's *reduced cost base is worked out similarly.

 (4) The market value of an interest in an asset is worked out when the partner *disposed of it. The *cost base or *reduced cost base of an interest in an asset is worked out at the same time.

Replacement‑asset roll‑over if the partners dispose of all the assets of a business

122‑170  Capital gain or loss disregarded

  If the partners choose a roll‑over for *disposing of their interests in all the assets of a *business to the company, a *capital gain or *capital loss any partner makes from the disposal is disregarded.

122‑175  Other consequences

  The other consequences relate to the *shares the partners receive and depend on when they *acquired their interests in the assets of the *business.

Note 1: There are 3 possible cases:

                  * a partner acquired all the interests on or after 20 September 1985: see section 122‑180;

                  * a partner acquired all the interests before that day: see section 122‑185;

                  * a partner acquired some of the interests on or after that day: see section 122‑190.

Note 2: There are other consequences for the partnership and the company if the partners dispose of their interests in trading stock of the partnership: see Division 70.

122‑180  All interests acquired on or after 20 September 1985

 (1) If a partner *acquired all of the partner's interests in the assets of the *business on or after 20 September 1985:

 (a) the first element of the