Document ID: chunk:federal_register_of_legislation:C2010C00610:clause:2_8
Version: federal_register_of_legislation:C2010C00610
Segment Type: clause
Provision Reference: sch 2 cl 8
Character Range: 10992–11827

8  At the end of Subdivision 104‑L
Add:

104‑535  Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8

 (1) CGT event L8 happens if:
 (a) an entity becomes a *subsidiary member of a *consolidated group or a *MEC group; and
 (b) the *tax cost setting amount for a reset cost base asset of the entity is reduced under subsection 705‑40(1) (including in its application in accordance with Subdivisions 705‑B to 705‑D); and
 (c) some or all (the unallocated amount) of the reduction cannot be allocated as mentioned in subsection 705‑40(2).

 (2) The time of the event is just after the entity becomes a *subsidiary member of the group.

 (3) For the head company core purposes mentioned in subsection 701‑1(2), the *head company makes a capital loss equal to the unallocated amount.