Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 11/20)
Character Range: 1803570–1806066

renewed.

Exceptions
 (5) A *capital gain or *capital loss you make is disregarded if:
 (a) you *acquired the asset before 20 September 1985; or
 (b) for a lease that you granted:
 (i) it was granted before that day; or
 (ii) if it has been renewed or extended—the start of the last renewal or extension occurred before that day.
Note 1: There are other exceptions if:
• your lease expires and you did not use it mainly to produce assessable income: see section 118‑40; or
• you exercise rights to acquire shares or units: see section 130‑40; or
• you acquire shares or units by converting a convertible interest: see section 130‑60; or
• you exercise an option: see section 134‑1.
Note 2: A company can agree to forgo any capital loss it makes as a result of forgiving a commercial debt owed to it by another company where the companies are under common ownership: see section 245‑90.
Note 3: A capital gain or loss a company makes because shares in its 100% subsidiary are cancelled (an example of CGT event C2) on the liquidation of the subsidiary may be reduced if there was a roll‑over for a CGT asset under Subdivision 126‑B: see section 126‑85.
Note 5: Cost base adjustments are made only under Subdivision 125‑B if there is a roll‑over under that Subdivision for CGT event C2 happening as a result of a demerger.
Note 6: A capital gain or loss made by a demerging entity from CGT event C2 happening as a result of a demerger is also disregarded: see section 125‑155.
Note 7: A capital gain or loss you make from the meeting of your entitlement under Division 2AA (Financial claims scheme for account‑holders with insolvent ADIs) of Part II of the Banking Act 1959 or Part VC (Financial claims scheme for account‑holders with insolvent general insurers) of the Insurance Act 1973 is disregarded: see sections 253‑10 and 322‑30 of this Act.

104‑30  End of option to acquire shares etc.: CGT event C3
 (1) CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to *acquire a *CGT asset that is:
 (a) *shares in the company or units in the unit trust; or
 (b) *debentures of the company or unit trust;
ends in one of these ways:
 (c) it is not exercised by the latest time for its exercise;
 (d) it is cancelled;
 (e) it is released or abandoned.
 (2) The time of the event is when the option ends.
 (3) The company or trustee makes a capital gain if the *capital proceeds from the grant of the option are more than the expenditure incurred in granting