Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:2_4:p1
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 2 cl 4 (pt 1/5)
Character Range: 66271–68941

4  After Subdivision 124‑L
Insert:

Subdivision 124‑M—Scrip for scrip roll‑over

Guide to Subdivision 124‑M

124‑775  What this Subdivision is about

      This Subdivision allows you to choose a roll‑over where post‑CGT shares or trust interests you own are replaced with other shares or trust interests, for example, where there is a company takeover.
      You can only choose the roll‑over if you would have made a capital gain from the exchange.

Table of sections

Operative provisions

124‑780 Replacement of shares or trust interest
124‑785 What is the roll‑over
124‑790 Partial roll‑over
124‑795 Exceptions
124‑800 Cost base of interest received for pre‑CGT interest
124‑805 Meaning of trust voting interest
124‑810 Certain companies and trusts not regarded as having 300 members or beneficiaries

[This is the end of the Guide.]

Operative provisions

124‑780  Replacement of shares or trust interest

 (1) You can choose to obtain a roll‑over if:
 (a) you own:
 (i) a *share that you *acquired on or after 20 September 1985 or an interest in such a share (your original interest) in a company (the original entity); or
 (ii) a unit or other interest that you acquired on or after that day or an interest in such a unit or interest (also your original interest) in a trust (also the original entity); and
 (b) an entity (the acquiring entity) makes an offer to all of the holders of interests in the original entity to *acquire:
 (i) if the original entity is a company—*voting shares; and
 (ii) if the original entity is a trust—*trust voting interests in the trust or, if there are none, units or other fixed interests in the trust; and
 (c) you exchange your original interest as mentioned in subsection (2); and
 (d) in consequence of the offer, the acquiring entity has:
 (i) if the original entity is a company—at least 80% of the voting shares in the original entity; or
 (ii) if the original entity is a trust—at least 80% of the trust voting interests in the original entity or, if there are none, interests in the trust carrying entitlements to at least 80% of the income and capital of the trust; and
 (e) apart from the roll‑over, you would make a *capital gain from the exchange.

Note 1: There are some exceptions: see section 124‑795.

Note 2: If you also exchange a CGT asset that you acquired before 20 September 1985, the cost base of any interest received in exchange for it is worked out under section 124‑800.

 (2) You must exchange your original interest in consequence of the offer for:
 (a) if your original interest was a *share or interest in a share in a company:
 (i) a share or interest in a share (your replacement interest)