Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 7/10)
Character Range: 225899–228698

rule: modification 1

No capital proceeds

 (1) If you received no *capital proceeds from a *CGT event, you are taken to have received the market value of the *CGT asset that is the subject of the event. (The market value is worked out as at the time of the event.)

Example: You give a CGT asset to another entity. You are taken to have received the market value of the CGT asset.

There are capital proceeds

 (2) The *capital proceeds from a *CGT event are replaced with the market value of the *CGT asset that is the subject of the event if:

 (a) some or all of those proceeds cannot be valued; or

 (b) those capital proceeds are more or less than the market value of the asset and:

 (i) you and the entity that *acquired the asset from you did not deal with each other at arm's length in connection with the event; or

 (ii) the CGT event is the redemption, release, abandonment, surrender, forfeiture or cancellation of the asset.

(The market value is worked out as at the time of the event.)

Note: The matters set out in subparagraph (2)(b)(ii) are examples of CGT event C2.

Market value for CGT event C2

 (3) Subsection (1) does not apply to:

 (a) these examples of *CGT event C2:

 (i) the expiry of a *CGT asset you own;

 (ii) the cancellation of your statutory licence; or

 (b) *CGT event D1 (about creating contractual or other rights).

 (3A) If you need to work out the market value of a *CGT asset that is the subject of *CGT event C2, work it out as if the event had not occurred and was never proposed to occur.

Example: A company cancels shares you own in it. You work out the market value of the shares by disregarding the cancellation.

CGT assets the subject of certain events

 (4) To avoid doubt, the *CGT asset that is the subject of a *CGT event specified in this table is the asset so specified.

*CGT assets the subject of certain events
For this *CGT event:
                                           This asset is the subject of the event:
D1                                         the right you created
D2                                         the option you granted
D3                                         the right you granted
E8                                         your interest or part interest in the trust capital
K1                                         your partially realised item of *intellectual property
K6                                         the *share or interest you *acquired before 20 September 1985

116‑40  Apportionment rule: modification 2

 (1) If you receive a payment in connection with a transaction that relates to more than one *CGT event, the capital proceeds from each event are so much of the payment as is reasonably attributable to that event.

Example: You sell a block of land and