Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:16_1:p11
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 16 cl 1 (pt 11/12)
Character Range: 468677–471387

you have to make adjustments to the *cost base and *reduced cost base of your *ownership interests under section 125‑80, 125‑85 or 125‑90 because of a *demerger, no other adjustment can be made under this Act to those cost bases and reduced cost bases because of something that happens under the demerger.
Note: Those sections deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.

125‑100  No further demerger relief in some cases
  This Division does not apply to the remaining *ownership interests in a *demerged entity if one or more members of the *demerger group *disposed of or cancelled less than 100% of the total ownership interests of that group in the demerged entity.
Note: After the demerger, a former member of the demerger group can undertake a further demerger to which this Division can apply.

Subdivision 125‑C—Consequences for members of demerger group

Guide to Subdivision 125‑C

125‑150  Guide to Subdivision 125‑C

      Certain capital gains and capital losses that members of a demerger group make under a demerger are disregarded.
      Certain capital losses made under a demerger are reduced where the demerger results in a value shift.

Table of sections

Operative provisions
125‑155 Certain capital gains or losses disregarded for demerging entity
125‑160 No CGT event J1
125‑165 Adjusted capital loss for value shift under a demerger
125‑170 Reduced cost base reduction if demerger asset subject to roll‑over
[This is the end of the Guide.]

Operative provisions

125‑155  Certain capital gains or losses disregarded for demerging entity
  Any *capital gain or *capital loss a *demerging entity makes from *CGT event A1, *CGT event C2, *CGT event C3 or *CGT event K6 happening to its *ownership interests in a *demerged entity under a *demerger is disregarded.
Note 1: The full list of CGT events is in section 104‑5.
Note 2: This section will not apply if section 125‑100 applies.

125‑160  No CGT event J1
  *CGT event J1 does not happen to a *demerged entity or a member of a *demerger group under a *demerger.

125‑165  Adjusted capital loss for value shift under a demerger
  A *capital loss made by an entity that was a member of a *demerger group from a *CGT event happening to a *CGT asset under a *demerger or after a demerger is reduced to the extent that the capital loss is reasonably attributable to a reduction in the *market value of the asset because of the demerger.
Example: The market value of equity or loan interests in the demerging entity may be reduced by the disposal, for inadequate value, of ownership interests of another member of the demerger group to owners of original