Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121as:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121AS (pt 2/7)
Character Range: 1053255–1061049

2. For the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, he or she is taken:
                                                                                                                                                                                                                                                                                                                                                                                     (a) to have paid, as consideration for the acquisition of the interest disposed of, an amount worked out using the following formula:
                                                                                                                                                                                                                                                                                                                                                                                     ; and
                                                                                                                                                                                                                                                                                                                                                                                     (b) to have paid the amount in paragraph (a), and to have acquired the interest disposed of, on the demutualisation resolution day.

  5 Demutualisation method 3, 4 or 5:
   After the issue of the shares (each of which is a demutualisation share) in the mutual insurance company as mentioned in paragraph 121AH(1)(b), 121AI(1)(b) or 121AJ(1)(b), the holding company (the disposer) disposes of an asset consisting of:                                                                                                                             1. A capital loss that the disposer makes from the disposal of the demutualisation share or interest in such a share is disregarded if the disposal takes place before the demutualisation listing day (see note 4 to this table).
    (a) a demutualisation share, or an interest in such a share; or                                                                                                                                                                                                                                                                                                               2. If the disposal is of a demutualisation share (other than a demutualisation original share) or an interest in such a share then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal, the disposer is taken:
    (b) another share (a non‑demutualisation bonus share) in the mutual insurance company, or an interest in such a share, where the share is a bonus share mentioned in Division 8 of former Part IIIA and any of the demutualisation shares are the original shares mentioned in that Division.                                                                                    (a) to have paid as consideration for the acquisition of the share or interest both:
                                                                                                                                                                                                                                                                                                                                                                                       (i) the amount worked out using the formula:

                                                                                                                                                                                                                                                                                                                                                                                       ; and

                                                                                                                                                                                                                                                                                                                                                                                       (ii) any consideration actually paid or given for the acquisition; and
   (For the purposes of the modifications relating to this item, if any of the original shares mentioned in Division 8 of former Part IIIA is a demutualisation share, it is called a demutualisation original share.)                                                                                                                                                               (b) to have paid the amount in subparagraph (a)(i) on the demutualisation resolution day and the amount in subparagraph (a)(ii) when it was actually paid; and
                                                                                                                                                                                                                                                                                                                                                                                     (c) to have acquired the share or interest on the demutualisation resolution day.
                                                                                                                                                                                                                                                                                                                                                                                  3. If the disposal is of either:
                                                                                                                                                                                                                                                                                                                                                                                     (a) a demutualisation original share, or an interest in such a share; or
                                                                                                                                                                                                                                                                                                                                                                                     (b) a non‑demutualisation bonus share, or an interest in such a share;
                                                                                                                                                                                                                                                                                                                                                                                   then, for the purpose of working out whether the disposer made a capital gain, or made a capital loss (where modification 1 does not apply), from the disposal:
                                                                                                                                                                                                                                                                                                                                                                                     (c) for the purposes