Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 10/30)
Character Range: 4187138–4189772

more than one occasion on which the *capital protection can be invoked, this Act applies as if there were a separate put option for each of those occasions. So much of the amount to which subsection 247‑20(6) applies as is reasonably attributable to each option is taken to have been incurred for that option.
 (2) However, if a borrower may invoke the *capital protection under a *capital protected borrowing at any time up to the end of a period, or only at the end of a period, for which there is capital protection, this Act applies as if there were a single put option for that period.

247‑30  Exercise or expiry of option
 (1) If the *capital protection under a *capital protected borrowing is invoked:
 (a) the borrower is taken to have exercised the put option; and
 (b) any interest in a *share, unit in a unit trust or stapled security that is acquired by the lender or another entity under the *arrangement as a result of that capital protection being invoked is taken to have been disposed of by the borrower as a result of the exercise of the option.
 (2) If the *capital protection under a *capital protected borrowing is not invoked on or before the last occasion on which it could have been, the put option is taken to have expired.
Note: If a borrower under a capital protected borrowing holds the protected things on capital account, the exercise or expiry of the put option may give rise to a capital gain or capital loss: see sections 104‑25 (CGT event C2) and 134‑1 (exercise of options).

Division 250—Assets put to tax preferred use

Table of Subdivisions
 Guide to Division 250
250‑A Objects
250‑B When this Division applies to you and an asset
250‑C Denial of, or reduction in, capital allowance deductions
250‑D Deemed loan treatment of financial benefits provided for tax preferred use
250‑E Taxation of deemed loan
250‑F Treatment of asset when Division ceases to apply to the asset
250‑G Objections against determinations and decisions by the Commissioner

Guide to Division 250

250‑1  What this Division is about

      This Division denies or reduces certain capital allowance deductions that would otherwise be available to you in relation to an asset if the asset is put to a tax preferred use in certain circumstances.
      If the capital allowance deductions are denied or reduced, certain financial benefits in relation to the tax preferred use of the asset are assessed only to the extent of a notional gain component. This component is worked out on the basis of treating the arrangements under which the asset is put to a tax preferred use, and financial benefits are provided in relation to