Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 16/22)
Character Range: 2185006–2187991

310‑D applies: see section 116‑110
E8                              Disposal by beneficiary of capital interest             1, 2, 3, 4, 5, 6                     See section 116‑80
F1                              Granting a lease                                        2, 3, 4, 6                           None
F2                              Granting a long‑term lease                              2, 3, 4, 6                           None
F4                              Lessee receives payment for changing lease              2, 3, 4, 6                           None
F5                              Lessor receives payment for changing lease              2, 3, 4, 6                           None
H2                              Receipt for event relating to a CGT asset               2, 3, 4, 6                           None
K6                              Pre‑CGT shares or trust interest                        1, 2, 3, 4, 5, 6                     None
K9                              Entitlement to receive payment of a *carried interest   2, 3, 4, 6                           None

116‑30  Market value substitution rule: modification 1

No capital proceeds
 (1) If you received no *capital proceeds from a *CGT event, you are taken to have received the *market value of the *CGT asset that is the subject of the event. (The market value is worked out as at the time of the event.)
Example: You give a CGT asset to another entity. You are taken to have received the market value of the CGT asset.

There are capital proceeds
 (2) The *capital proceeds from a *CGT event are replaced with the *market value of the *CGT asset that is the subject of the event if:
 (a) some or all of those proceeds cannot be valued; or
 (b) those capital proceeds are more or less than the market value of the asset and:
 (i) you and the entity that *acquired the asset from you did not deal with each other at *arm's length in connection with the event; or
 (ii) the CGT event is CGT event C2 (about cancellation, surrender and similar endings).
(The market value is worked out as at the time of the event.)
 (2A) Subsection (2) does not apply if there is a partial roll‑over for the *CGT event because of section 124‑150.
 (2B) Subsection (2) does not apply to a situation that would otherwise be covered by paragraph (2)(b) if the *CGT event is *CGT event C2 (about cancellation, surrender and similar endings) and the *CGT asset that is the subject of the event is:
 (a) a *share in a company that has at least 300 *members and is not a company that is covered by section 116‑35; or
 (b) a unit in a unit trust that has at least 300 unit holders and is not a trust that is covered by section 116‑35.
Note: So, for one of these assets, the capital proceeds for the cancellation will be what you actually received.
 (2C) Subsection (2) does not apply if:
 (a) you are a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; and
 (b) the *capital