Document ID: chunk:federal_register_of_legislation:C2004A00844:clause:1_4:p1
Version: federal_register_of_legislation:C2004A00844
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/9)
Character Range: 88273–91031

4                                                  Disposal of asset to another member of the same wholly‑owned group  The transferor is able to choose a roll‑over under Subdivision 126‑B for the *CGT event.

Note: Section 40‑345 sets out what the relief is.

 (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 roll‑over relief under Subdivision 122‑A).

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 *held 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: Section 40‑345 sets out what the relief is.

 (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 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 a person dies before the end of the time allowed for jointly choosing roll‑over relief, the trustee of the person's 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: 30 penalty units.

Exception: Subdivision 170‑D applies

 (8) There can be no roll‑over relief if Subdivision 170‑D (about transactions by a company that is a member of a linked group) applies to the disposal of the *depreciating asset or the change in interests in it.

40‑345  What the roll‑over relief is

 (1) Section 40‑285 does not apply to the *balancing adjustment event for the transferor.

 (2) The transferee can deduct the decline in value of the *depreciating asset using the same method and *effective life (or *remaining effective life if that method is the *prime cost method) that the transferor was