Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 2/3)
Character Range: 2682864–2685603

subsequent *CGT event happens in relation to the asset, the modifications specified in Division 7 of Part X, or Subdivision D of Division 6AAA of Part III, of the Income Tax Assessment Act 1936 apply.

126‑25  Conditions for the purposes of subsections 126‑5(3A) and 126‑15(5)
 (1) The conditions referred to in subsections 126‑5(3A) and 126‑15(5) are that:
 (a) at the time of the trigger event:
 (i) the *spouses, or former spouses, involved are separated; and
 (ii) there is no reasonable likelihood of cohabitation being resumed; and
 (b) the trigger event happened because of reasons directly connected with the breakdown of the relationship between the spouses or former spouses.
 (2) For the purposes of this section, the question whether *spouses or former spouses have separated is to be determined in the same way as it is for the purposes of section 48 of the Family Law Act 1975 (as affected by sections 49 and 50 of that Act).

Subdivision 126‑B—Companies in the same wholly‑owned group

Guide to Subdivision 126‑B

126‑40  What this Subdivision is about
      A roll‑over may be available for the transfer of a CGT asset between 2 companies, or the creation of a CGT asset by one company in another, if:

                (a) both companies are members of the same wholly‑owned group; and
                (b) at least one of the companies is a foreign resident.

Table of sections

Operative provisions
126‑45 Roll‑over for members of wholly‑owned group
126‑50 Requirements for roll‑over
126‑55 When there is a roll‑over
126‑60 Consequences of roll‑over
126‑75 Originating company is a CFC
126‑85 Effect of roll‑over on certain liquidations

Operative provisions

126‑45  Roll‑over for members of wholly‑owned group
 (1) There may be a roll‑over if a *CGT event (the trigger event) happens involving a company (the originating company) and another company (the recipient company) in the circumstances set out in section 126‑50.
 (2) Only these *CGT events are relevant:
 (a) CGT events A1 and B1 (a disposal case); and
 (b) CGT events D1, D2, D3 and F1 (a creation case).
Note: The full list of CGT events is in section 104‑5.
 (3) However, there is no roll‑over for *CGT event B1 if title in the *CGT asset does not pass to the transferee at or before the end of the agreement.
Note: CGT event J1 can happen if the recipient company stops being a 100% subsidiary of a company in the relevant group: see section 104‑175.

126‑50  Requirements for roll‑over
 (1) The originating company and recipient company must be members of the same *wholly‑owned group at the time of the trigger event.
Note: This requirement is taken to be satisfied in the case of the transfer of the life insurance business of a life insurance company: