Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 1/5)
Character Range: 2035835–2038517

7                                                 A right to *dispose of a *share in a company                                                                                                   it was issued to you by the company and was exercised by you or by another entity who became the owner of the right

Note 1: Disregard subsections (2) and (3) for shares or units that you acquired before 16 August 1989: see section 112‑20 of the Income Tax (Transitional Provisions) Act 1997.
Note 2: This section does not apply to ESS interests acquired under employee share schemes: see subsection 130‑80(4).

112‑25  Split, changed or merged assets

Split or changed assets
 (1) This section sets out what happens if:
 (a) a *CGT asset (the original asset) is split into 2 or more assets (the new assets); or
 (b) a *CGT asset (also the original asset) changes in whole or in part into an asset (also the new asset) of a different nature;
and you are the beneficial owner of the original asset and each new asset.
Example: You subdivide a block of land into 3 separate blocks. Each of those blocks is a new asset.
 (2) The splitting or change is not a *CGT event.
 (3) You work out the *cost base and *reduced cost base of each new asset as follows:

           Method statement
           Step 1. Work out each element of the *cost base and *reduced cost base of the original asset at the time of the event referred to in subsection (1).
           Step 2. Apportion in a reasonable way each element to each new asset. The result is each corresponding element of the new asset's *cost base and *reduced cost base.

Merged assets
 (4) If 2 or more *CGT assets (the original assets) are merged into a single asset (the new asset) and you are the beneficial owner of the original assets and the new asset:
 (a) the merger is not a *CGT event; and
 (b) each element of the *cost base and *reduced cost base of the new asset (at the time of the merging) is the sum of the corresponding elements of each original asset.

112‑30  Apportionment rules

Apportionment on acquisition of an asset
 (1) If you *acquire a *CGT asset because of a transaction and only part of the expenditure you incurred under the transaction relates to the acquisition of the asset, the first element of your *cost base and *reduced cost base of the asset is that part of the expenditure that is reasonably attributable to the acquisition of the asset.
  The expenditure can include giving property: see section 103‑5.

Apportionment of expenditure in other elements
 (1A) If you incur expenditure and only part of it relates to another element of the *cost base or *reduced cost base of a *CGT asset, that element