Document ID: chunk:federal_register_of_legislation:C2007A00055:clause:1_20
Version: federal_register_of_legislation:C2007A00055
Segment Type: clause
Provision Reference: sch 1 cl 20
Character Range: 14658–15809

20  Subsection 152‑10(2)
Repeal the subsection (including the example), substitute:

 (2) If the *CGT asset is a *share in a company or an interest in a trust (the object company or trust), one of these additional basic conditions must be satisfied just before the *CGT event:
 (a) you are a *CGT concession stakeholder in the object company or trust; or
 (b) CGT concession stakeholders in the object company or trust together have a *small business participation percentage in you of at least 90%.

Example: A discretionary trust sells shares in an operating company (the object company). Anna receives 90% of the distributions from the trust, and the trust has a 50% interest in the object company.

 The trust cannot be a CGT concession stakeholder in the object company because it is not an individual and therefore cannot satisfy paragraph (2)(a).

 However, the trust can satisfy paragraph (2)(b) because Anna is a CGT concession stakeholder in the object company (because her small business participation percentage in the object company is 45%, which is greater than 20%) and her small business participation percentage in the trust is 90%.