Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 1/13)
Character Range: 984633–987409

8                                                  Transfer of asset under a small business restructure roll‑over              A roll‑over under Subdivision 328‑G would be available in relation to the asset if the asset were not a *depreciating asset.

Note 1: Section 40‑345 sets out what the relief is.
Note 2: This Act also applies as if there were roll‑over relief under this subsection in the circumstances set out in section 620‑30 (which is about a body incorporated under one law ceasing to exist and disposing of its assets to a company incorporated under another law that has not significantly different ownership).
 (2) In applying an item in the table in subsection (1), disregard the following so far as they relate to the *depreciating asset you disposed of:
 (a) an exemption in Division 118 (which contains the general exemptions from CGT); and
 (b) subsection 122‑25(3) (which excludes certain assets from some kinds of CGT roll‑over); and
 (c) subsection 124‑870(5) (which excludes certain assets from roll‑over relief under Subdivision 124‑N).

Choosing roll‑over relief
 (3) There is also roll‑over relief if:
 (a) there is a *balancing adjustment event for a *depreciating asset because of subsection 40‑295(2) (about a change in the holding of, or in interests in, the asset); and
 (b) the entity or entities that had an interest in the asset before the change (also the transferor) and the entity or entities that have an interest in the asset after the change (also the transferee) jointly choose the roll‑over relief.
Example: The change could be a variation in the constitution of a partnership or in the interests of the partners.
Note 1: Section 40‑345 sets out what the relief is.
Note 2: Subdivision 328‑D sets out what the relief is for small business entities that calculate deductions for their depreciating assets under that Subdivision.
 (4) The choice must:
 (a) be in writing; and
 (b) contain enough information about the transferor's holding of the property for the transferee to work out how this Division or Subdivision 328‑D applies to the transferee's holding of the *depreciating asset; and
 (c) be made within 6 months after the end of the transferee's income year in which the *balancing adjustment event occurred, or within a longer period allowed by the Commissioner.
 (5) If you die before the end of the time allowed for jointly choosing roll‑over relief, the trustee of your estate may be a party to the choice.
 (6) The transferor must keep the choice or a copy of it for 5 years after the *balancing adjustment event occurred.
Penalty: 30 penalty units.
 (7) The transferee must keep the choice or a copy of it until the end of 5 years after the next *balancing adjustment event occurs for the *depreciating asset.
Penalty: