Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 5/6)
Character Range: 300164–302986

in a company. There are consequences for the company also.

Table of sections

When is a roll‑over available

122‑15 Disposal or creation of assets—wholly‑owned company
122‑20 What you receive for the trigger event
122‑25 Other requirements to be satisfied
122‑35 What if the company undertakes to discharge a liability (disposal case)
122‑37 Rules for working out what a liability in respect of an asset is

Replacement‑asset roll‑over if you dispose of a CGT asset

122‑40 Disposal of a CGT asset

Replacement‑asset roll‑over if you dispose of all the assets of a business

122‑45 Disposal of all the assets of a business
122‑50 All assets acquired on or after 20 September 1985
122‑55 All assets acquired before 20 September 1985
122‑60 Assets acquired before and after 20 September 1985

Replacement‑asset roll‑over for a creation case

122‑65 Creation of asset

Same‑asset roll‑over consequences for the company (disposal case)

122‑70 Consequences for the company (disposal case)

Same‑asset roll‑over consequences for the company (creation case)

122‑75 Consequences for the company (creation case)

[This is the end of the Guide.]

When is a roll‑over available

122‑15  Disposal or creation of assets—wholly‑owned company

  If you are an individual or a trustee, you can choose to obtain a roll‑over if one of the *CGT events (the trigger event) specified in this table happens involving you and a company in the circumstances set out in sections 122‑20 to 122‑35.

Relevant *CGT events
Event No.             What you do
A1                    *Dispose of a CGT asset, or all the assets of a business, to the company
D1                    Create contractual or other rights in the company
D2                    Grant an option to the company
D3                    Grant the company a right to income from mining
F1                    Grant a lease to the company, or renew or extend a lease

Note 1: The roll‑over starts at section 122‑40.

Note 2: Section 103‑25 tells you when you have to make the choice.

Example: Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.

122‑20  What you receive for the trigger event

 (1) The consideration you receive for the trigger event happening must be only:

 (a) *shares in the company; or

 (b) for a *disposal of a *CGT asset, or all the assets of a business, to the company (a disposal case)—shares in the company and the company undertaking to discharge one or more liabilities in respect of the asset or assets of the *business (as appropriate).

Note: There are rules for working out what are the liabilities in respect of an asset: see section 122‑37.

 (2) The *shares cannot be *redeemable shares.

 (3) The market value of the *shares