Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 7/40)
Character Range: 53381–55986

under that power; or

 (d) when the entity took possession under that power.

Note: You may be able to choose a roll‑over if an asset is compulsorily acquired: see Subdivision 124‑B.

 (7) CGT event A1 does not happen if the *disposal of the asset was done to provide or redeem a security.

Subdivision 104‑B—Use and enjoyment before title passes

104‑15  Use and enjoyment before title passes: CGT event B1

 (1) CGT event B1 happens if you enter into an agreement with another entity under which:

 (a) the right to the use and enjoyment of a *CGT asset you own passes to the other entity; and

 (b) title in the asset will or may pass to the other entity at the end of the agreement.

 (2) The time of the event is when the other entity first obtains the use and enjoyment of the asset.

 (3) You make a capital gain if the *capital proceeds from the agreement are more than the asset's *cost base. You make a capital loss if those *capital proceeds are less than the asset's *reduced cost base.

Exceptions

 (4) A *capital gain or *capital loss you make is disregarded if:

 (a) title in the asset does not pass to the other entity when the agreement ends; or

 (b) you *acquired the asset before 20 September 1985.

Subdivision 104‑C—End of a CGT asset

Table of sections

104‑20 Loss or destruction of a CGT asset: CGT event C1
104‑25 Cancellation, surrender and similar endings: CGT event C2
104‑30 End of option to acquire shares etc.: CGT event C3

104‑20  Loss or destruction of a CGT asset: CGT event C1

 (1) CGT event C1 happens if a *CGT asset you own is lost or destroyed.

Note: This event can apply to part of a CGT asset: see section 108‑5 (definition of CGT asset).

 (2) The time of the event is:

 (a) when you first receive compensation for the loss or destruction; or

 (b) if you receive no compensation—when the loss is discovered or the destruction occurred.

 (3) You make a capital gain if the *capital proceeds from the loss or destruction are more than the asset's *cost base. You make a capital loss if those *capital proceeds are less than the asset's *reduced cost base.

Exception

 (4) A *capital gain or *capital loss you make is disregarded if you *acquired the asset before 20 September 1985.

104‑25  Cancellation, surrender and similar endings: CGT event C2

 (1) CGT event C2 happens if your ownership of an intangible *CGT asset ends by the asset:

 (a) being redeemed or cancelled; or

 (b) being released, discharged or satisfied; or

 (c) expiring; or

 (d) being abandoned, surrendered or forfeited.

 (2) The time of the