Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 12/53)
Character Range: 2943792–2946372

of the income year; or
             (b) it satisfies the business continuity test by carrying on the same business (including entering into no new kinds of transactions and conducting no new kinds of business), or by carrying on a similar business (on or after 1 July 2015).

Table of sections

Operative provisions
165‑96 When a company cannot apply a net capital loss

Operative provisions

165‑96  When a company cannot apply a net capital loss
 (1) In working out its *net capital gain for the *current year, a company cannot apply a *net capital loss it has for an earlier income year if Subdivision 165‑A would prevent it from deducting the loss for the current year if:
 (a) the loss were a *tax loss of the company for that earlier income year; and
 (b) section 165‑20 (about deducting part of a tax loss) were disregarded.
Note 1: A company's net capital gain for an income year is usually worked out under section 102‑5.
Note 2: Subdivision 165‑A deals with the deductibility of a company's tax loss for an earlier income year if there has been a change in the ownership or control of the company in the period from the start of the loss year to the end of the income year.
Note 3: Subdivision 165‑F may affect the application of Subdivision 165‑A.
 (2) If subsection (1) prevents the company from applying the *net capital loss, it can apply the part of the loss that it made during a part of that earlier income year, but only if, assuming that part of that income year had been treated as the whole of it, the company would have been entitled to apply the net capital loss.

Subdivision 165‑CB—Working out the net capital gain and the net capital loss for the income year of the change

Guide to Subdivision 165‑CB

165‑99  What this Subdivision is about

      A company that has not had the same ownership and control during the income year, and has not satisfied the business continuity test, works out its net capital gain and net capital loss under this Subdivision.

Table of sections

When a company must work out its net capital gain and net capital loss under this Subdivision
165‑102 On a change of ownership, or of control of voting power, unless the company satisfies the business continuity test

Working out the company's net capital gain and net capital loss
165‑105 First, divide the income year into periods
165‑108 Next, calculate the notional net capital gain or notional net capital loss for each period
165‑111 How to work out the company's net capital gain
165‑114 How to work out the company's net capital loss

When a company must work out its