Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:5_2
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 5 cl 2
Character Range: 303792–304794

2  At the end of section 104‑230
Add:

 (10) A *capital gain is disregarded for a *share in a company or an interest in a trust to the extent that, had you *acquired it on or after 20 September 1985, you could have chosen a roll‑over for the other *CGT event under Subdivision 124‑M (scrip for scrip roll‑over).

Example: Bill owns a unit in a trust that he acquired before 20 September 1985. He exchanges the unit for a unit in another trust worth $60 and $40 cash. He makes a capital gain of $50 because of CGT event K6.

 Had the unit been acquired after 20 September 1985, Bill would have been entitled to a partial roll‑over of the capital gain under Subdivision 124‑M to the extent that his capital proceeds constituted a replacement unit.

 Bill can therefore disregard 60/100 of the $50 gain ($30). The cost base of Bill's replacement unit is reduced by this amount. Bill must include the remaining $20 of the CGT event K6 gain in the calculation of his net capital gain or loss for the year.