Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p8
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 8/12)
Character Range: 50604–53186

lost policy holders trust in that trust; and
 (b) the *capital proceeds from the event include or consist of money received by the beneficiary.

 (2) Work out whether the beneficiary makes a *capital gain or *capital loss from the *CGT event, and the amount of the gain or loss, assuming that:
 (a) the *capital proceeds from the CGT event were the amount they would be if they did not include any *market value of property other than money; and
 (b) the *cost base and *reduced cost base for the interest were the amount worked out using the formula:

Example: Assume that the beneficiary of the lost policy holders trust is paid $50 in money by the trustee to satisfy the beneficiary's interest in the trust so that a CGT event happens, and that the valuation factor worked out under section 316‑65 is 0.9. The beneficiary makes a capital gain from the event of $5, worked out as follows:

Note: Division 114 (Indexation of cost base) is not relevant, because this section provides exhaustively for working out the amount of the cost base.

 (3) The *capital gain or *capital loss is not to be disregarded, despite sections 316‑55 and 316‑160.

Note: The capital gain is not a discount capital gain: see section 115‑55.

316‑170  Roll‑over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust

 (1) This section applies in relation to a *CGT event if:
 (a) the CGT event happens in relation to an asset that:
 (i) is a *share or a right to *acquire one or more shares; and
 (ii) is held by the trustee of the lost policy holders trust on behalf of a beneficiary of the lost policy holders trust; and
 (b) the CGT event happens because the beneficiary of the lost policy holders trust either:
 (i) is transferred the asset by the trustee; or
 (ii) becomes absolutely entitled to the asset.

Consequence for trustee

 (2) Disregard a *capital gain or *capital loss the trustee makes from the *CGT event.

Consequences for beneficiary

 (3) The *cost base and *reduced cost base of the asset in the hands of the trustee of the lost policy holders trust just before the *CGT event becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary of the lost policy holders trust.

Note: Section 316‑105 affects the cost base of the asset in the hands of the trustee of the lost policy holders trust if the asset is covered by section 316‑110.

 (4) The beneficiary of the lost policy holders trust is taken to have *acquired the asset when the trustee acquired it.

316‑175  Trustee assessed