Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/22)
Character Range: 2161200–2163822

trust estate is specifically entitled, and to which the trustee is not specifically entitled—that amount multiplied by the entity's *adjusted Division 6 percentage of the income of the trust estate for the relevant income year.

115‑228  Specifically entitled to an amount of a capital gain
 (1) A beneficiary of a trust estate is specifically entitled to an amount of a *capital gain made by the trust estate in an income year equal to the amount calculated under the following formula:
where:
net financial benefit means an amount equal to the *financial benefit that is referable to the *capital gain (after any application by the trustee of losses, to the extent that the application is consistent with the application of capital losses against the capital gain in accordance with the method statement in subsection 102‑5(1)).
share of net financial benefit means an amount equal to the *financial benefit that, in accordance with the terms of the trust:
 (a) the beneficiary has received, or can be reasonably expected to receive; and
 (b) is referable to the *capital gain (after application by the trustee of any losses, to the extent that the application is consistent with the application of capital losses against the capital gain in accordance with the method statement in subsection 102‑5(1)); and
 (c) is recorded, in its character as referable to the capital gain, in the accounts or records of the trust no later than 2 months after the end of the income year.
Note: A trustee of a trust estate that makes a choice under section 115‑230 is taken to be specifically entitled to a capital gain.
 (2) To avoid doubt, for the purposes of subsection (1), something is done in accordance with the terms of the trust if it is done in accordance with:
 (a) the exercise of a power conferred by the terms of the trust; or
 (b) the terms of the trust deed (if any), and the terms applicable to the trust because of the operation of legislation, the common law or the rules of equity.
 (3) For the purposes of this section, in calculating the amount of the *capital gain, disregard sections 112‑20 and 116‑30 (Market value substitution rule) to the extent that those sections have the effect of increasing the amount of the capital gain.

115‑230  Choice for resident trustee to be specifically entitled to capital gain

Purpose
 (1) The purpose of this section is to allow a trustee of a resident trust to make a choice that has the effect that the trustee will be assessed on a *capital gain of the trust if no trust property representing the capital gain has been paid to or applied for the benefit of a beneficiary