Document ID: chunk:federal_register_of_legislation:C2007A00055:clause:7_1:p4
Version: federal_register_of_legislation:C2007A00055
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 4/4)
Character Range: 67575–68154

to have been disposed of by the borrower as a result of the exercise of the option.

 (2) If the *capital protection under a *capital protected borrowing is not invoked on or before the last occasion on which it could have been, the put option is taken to have expired.

Note: If a borrower under a capital protected borrowing holds the protected things on capital account, the exercise or expiry of the put option may give rise to a capital gain or capital loss: see sections 104‑25 (CGT event C2) and 134‑1 (exercise of options).

Income Tax (Transitional Provisions) Act 1997