Document ID: chunk:federal_register_of_legislation:C2008A00097:clause:1_11:p5
Version: federal_register_of_legislation:C2008A00097
Segment Type: clause
Provision Reference: sch 1 cl 11 (pt 5/8)
Character Range: 18713–21308

of an individual on whose behalf the trust might hold assets would be an individual who has not completed a formal step required for them to be issued with demutualisation assets directly. Another example might be an individual living overseas.

315‑145  CGT treatment of demutualisation assets in lost policy holders trust

Cost base adjustment

 (1) The first element of the *cost base and *reduced cost base of a demutualisation asset issued to the trustee of a lost policy holders trust is its *market value on the day it is issued.

Note: There is an exception to this rule in Subdivision 315‑D where the asset is a share or right in a holding company with other assets.

Acquisition rule

 (2) The trustee is taken to have *acquired the demutualisation asset at the time it is issued.

315‑150  Roll‑over where assets transferred to lost policy holder

 (1) This section applies in relation to a *CGT event if:
 (a) the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust on behalf of a lost policy holder; and
 (b) the CGT event happens because the lost policy holder (or, if the lost policy holder has died, the *legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder) either:
 (i) is transferred the asset by the trustee; or
 (ii) becomes absolutely entitled to the asset.

Note: The asset may be a demutualisation asset, or some other asset.

Consequence for trustee

 (2) Disregard a *capital gain or *capital loss the trustee makes from the *CGT event.

Consequence for lost policy holder

 (3) The *cost base of the asset in the hands of the trustee of the lost policy holders trust just before the *CGT event becomes the first element of the cost base and *reduced cost base of the asset in the hands of the lost policy holder, *legal personal representative or beneficiary.

 (4) The lost policy holder, *legal personal representative or beneficiary is taken to have *acquired the asset when the trustee of the lost policy holders trust acquired it.

315‑155  Trustee assessed if assets dealt with not for benefit of lost policy holder

 (1) This section applies in relation to a *capital gain from a *CGT event if:
 (a) the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust; and
 (b) section 315‑150 does not apply to the CGT event.

 (2) If this section applies:
 (a) for the purposes of sections 97, 98A and 100 of the Income Tax Assessment Act 1936, the share of the net income of the trust that is attributable to the *capital