Document ID: chunk:federal_register_of_legislation:C2024C00267:section:8:p29
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 8 (pt 29/48)
Character Range: 299917–302713

30 June 2004; or
 (ii) if the originating company and the recipient company are members of the same consolidated group or consolidatable group and the head company of that group has a substituted accounting period—before the end of the head company's income year in which 30 June 2004 occurs.
 (2) The CGT asset involved (the roll‑over asset) must not be trading stock of the recipient company just after the time of the transfer.
 (3) If:
 (a) the roll‑over asset is a right or convertible interest referred to in Division 130, or an option referred to in Division 134, of the Income Tax Assessment Act 1997 or an exchangeable interest; and
 (b) the recipient company acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;
the other asset cannot become trading stock of the recipient company just after the recipient company acquired it.

126‑160  Effects of roll‑over
 (1) A capital gain or capital loss the originating company makes from the CGT event is disregarded.
 (2) The first element of the cost base of the original asset or the replacement asset for the recipient company is the cost base of the original asset for the originating company just before the time of the CGT event.
 (3) The first element of the reduced cost base of the original asset or the replacement asset for the recipient company is worked out similarly.
 (4) For a case where the originating company creates a CGT asset in the recipient company, the first element of the asset's cost base (in the hands of the recipient company) is the amount applicable under this table. The first element of its reduced cost base is worked out similarly.

Creating a CGT asset
CGT event number      Applicable amount
D1                    the incidental costs the originating company incurred that relate to the CGT event
D2                    the expenditure the originating company incurred to grant the option
D3                    the expenditure the originating company incurred to grant the right
F1                    the expenditure the originating company incurred on the grant, renewal or extension of the lease

  The expenditure can include giving property: see section 103‑5 of the Income Tax Assessment Act 1997.
 (5) If the originating company acquired the original asset before 20 September 1985, the recipient company is taken to have acquired the original asset or the replacement asset before that day.

126‑165  References to Subdivision 126‑B of the Income Tax Assessment Act 1997
  A reference in an Act to a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 includes a reference to a roll‑over under this Subdivision.
Example: Examples of the operation of this