Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:16_1:p10
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 16 cl 1 (pt 10/12)
Character Range: 466371–468905

of those interests you acquired before that day ends.
Note: CGT event K6 may be relevant if you later dispose your interests that are treated as being pre‑CGT.
Example: Bert owned 100 shares in a company of which 50 were acquired pre‑CGT. Under a demerger 20 of Bert's 100 shares were cancelled in exchange for new interests. As 20% of his shares were cancelled, 10 of his pre‑CGT shares are taken to have been cancelled.
 (8) If you choose a roll‑over for some but not all of your original interests, you apply the rules in this section as if your original interests for which you chose the roll‑over were your only original interests.

125‑85  Cost base adjustments where CGT event happens but no roll‑over chosen
 (1) You must adjust the *cost base and *reduced cost base of an *ownership interest you own in a company or trust if:
 (a) a *demerger happens to a *demerger group of which the company or trust is a member; and
 (b) you owned an original interest in the *head entity of the demerger group just before the demerger; and
 (c) a *CGT event happens to the original interest and you *acquire a new interest under the demerger; and
 (d) you do not choose a roll‑over under this Subdivision for the original interest.
 (2) The adjustments you must make are the same as the adjustments you would have to make under section 125‑80 for the *cost bases and *reduced cost bases of the remaining original interests and new interests just after the *CGT event if you could have chosen a roll‑over under this Subdivision for the *demerger and you had done so.

125‑90  Cost base adjustments where no CGT event
 (1) You must adjust the *cost base and *reduced cost base of an *ownership interest you own in a company or trust if:
 (a) a *demerger happens to a *demerger group of which the company or trust is a member; and
 (b) you owned an original interest in the *head entity of the demerger group just before the demerger; and
 (c) no *CGT event happens to the original interest, but you *acquire a new interest under the demerger.
 (2) The adjustments you must make are the same as the adjustments you would have to make under section 125‑80 if you could have chosen a roll‑over under this Subdivision for the *demerger and you had done so.

125‑95  No other cost base adjustment after demerger
  If 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