Document ID: chunk:federal_register_of_legislation:C2020C00244:clause:1_9:p4
Version: federal_register_of_legislation:C2020C00244
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 4/8)
Character Range: 19208–21898

trust cannot be utilised
 (3) If the roll‑over is chosen:
 (a) any *net capital loss of the receiving trust for an income year ending before the transfer time cannot be applied after the transfer time to reduce an amount of that trust's *capital gains; and
 (b) the sum of the receiving trust's *capital losses for the income year that includes the transfer time (the transfer year) is reduced by an amount equal to any net capital loss that the trust would have had for that year had that year ended just before the transfer time; and
 (c) any *tax loss of the receiving trust for an income year ending before the transfer time cannot be deducted after the transfer time from an amount of that trust's assessable income or *net exempt income; and
 (d) the sum of the receiving trust's deductions for the transfer year is reduced by an amount equal to any tax loss that the trust would have had for that year had that year ended just before the transfer time.
References in this subsection to the transfer time are to be read as references to the start time if subsection 126‑225(2) applies.
Note: Subsection 126‑225(2) applies if the roll‑over asset is transferred to the receiving trust after an earlier roll‑over under this Subdivision, for another asset, was obtained for the trusts.

Pre‑CGT assets
 (4) If:
 (a) the roll‑over is chosen; and
 (b) the transferring trust last *acquired the roll‑over asset before 20 September 1985;
the receiving trust is taken to have acquired it before that day.

126‑245  Consequences for beneficiaries—general approach for working out cost base etc.
 (1) If the roll‑over is chosen, each of the following:
 (a) the *cost base and *reduced cost base of each of a beneficiary's *membership interests in each trust;
 (b) the time each of the beneficiary's membership interests in the receiving trust is treated as having been *acquired;
is adjusted under this section for the transfer time unless the beneficiary has chosen for them to be adjusted under section 126‑250.
Note: The beneficiary can choose for these things to be adjusted once for several consecutive transfer times (for multiple roll‑over assets) if the beneficiary owned the interests at all of those times (see section 126‑250).

First element of cost base of interests in transferring trust
 (2) The first element of the *cost base, just after the transfer time, of each of the beneficiary's *membership interests in the transferring trust is an amount equal to such proportion of the interest's cost base just before the transfer time as is reasonable having regard to:
 (a) the *market value of the interest just after the transfer time, or a reasonable approximation of that market