Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:1_14:p1
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 1/2)
Character Range: 9231–11791

14  Subsection 160ZZPQ(3)
Repeal the subsection, substitute:

Calculation of gross non‑goodwill roll‑over amount for assets other than shares or units

 (3) If the roll‑over asset is none of the following:
 (a) goodwill;
 (b) a share in a company;
 (c) a unit in a unit trust;
an amount (the gross non‑goodwill roll‑over amount) equal to the notional capital gain is taken for the purposes of this Division to apply to the taxpayer in respect of the year of income in which the disposal occurred.

Calculation of gross non‑goodwill roll‑over amount for shares or units

 (3A) If the roll‑over asset is a share in a company or a unit in a unit trust, an amount (the gross non‑goodwill roll‑over amount) equal to the lesser of the following amounts is taken for the purposes of this Division to apply to the taxpayer in respect of the year of income in which the disposal occurred:
 (a) an amount equal to the notional capital gain;
 (b) the amount worked out using the formula:

Amount taken to be capital gain

 (3B) If the gross non‑goodwill roll‑over amount is the amount worked out under paragraph (3A)(b), an amount equal to the difference between the notional capital gain and the amount worked out under that paragraph is taken to be a capital gain that accrued to the taxpayer in the year of income in which the disposal occurred.

Unrealised net capital gain from active assets

 (3C) Subject to subsection (3D), for the purposes of paragraph (3A)(b), the unrealised net capital gain is the total of the capital gains (after deducting any capital losses) that would accrue to the company or trust at the time of the disposal, as the case may be, if all assets of the company or trust that:
 (a) either:
 (i) were active assets at that time; or
 (ii) had ceased to be active assets because of the cessation of the relevant business of the company or trust not earlier than 12 months before that time; and
 (b) had been active assets during more than one‑half of the period in which they were owned by the company or were assets of the trust, as the case may be;
were disposed of at that time and the consideration for the disposal of each asset was an amount equal to the market value of the asset.

Certain assets to be disregarded in calculating unrealised net capital gain

 (3D) In calculating the unrealised net capital gain referred to in subsection (3C), no regard is to be had to any asset that had been nominated by the company or trust as a replacement asset for the purposes of this Division and was acquired by the company or trust less