Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p57
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 57/58)
Character Range: 2444726–2447505

acquired on or after 20 September 1985
122‑55 All assets acquired before 20 September 1985
122‑60 Assets acquired before and after 20 September 1985

Replacement‑asset roll‑over for a creation case
122‑65 Creation of asset

Same‑asset roll‑over consequences for the company (disposal case)
122‑70 Consequences for the company (disposal case)

Same‑asset roll‑over consequences for the company (creation case)
122‑75 Consequences for the company (creation case)

When is a roll‑over available

122‑15  Disposal or creation of assets—wholly‑owned company
  If you are an individual or a trustee, you can choose to obtain a roll‑over if one of the *CGT events (the trigger event) specified in this table happens involving you and a company in the circumstances set out in sections 122‑20 to 122‑35.

Relevant *CGT events
Event No.             What you do
A1                    *Dispose of a CGT asset, or all the assets of a business, to the company
D1                    Create contractual or other rights in the company
D2                    Grant an option to the company
D3                    Grant the company a right to income from mining
F1                    Grant a lease to the company, or renew or extend a lease

Note 1: The roll‑over starts at section 122‑40.
Note 2: Section 103‑25 tells you when you have to make the choice.
Note 3: A roll‑over may also be available under Subdivision 328‑G (Restructures of small businesses).
Example: Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.

122‑20  What you receive for the trigger event
 (1) The consideration you receive for the trigger event happening must be only:
 (a) *shares in the company; or
 (b) for a *disposal of a *CGT asset, or all the assets of a business, to the company (a disposal case)—shares in the company and the company undertaking to discharge one or more liabilities in respect of the asset or assets of the *business (as appropriate).
Note: There are rules for working out what are the liabilities in respect of an asset: see section 122‑37.
 (2) The *shares cannot be *redeemable shares.
 (3) The *market value of the *shares you receive for the trigger event happening must be substantially the same as:
 (a) for a disposal case—the market value of the asset or assets you disposed of, less any liabilities the company undertakes to discharge in respect of the asset or assets (as appropriate); or
 (b) for another trigger event (a creation case)—the market value of the CGT asset created in the company (the created asset).
 (4) In working out if the requirement in paragraph (3)(a) is satisfied, if the *market value of the *shares is different to what it would otherwise be only because