Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 2/20)
Character Range: 6633312–6636090

gains), and taxing events generating a gain
  Use the following method statement:
 (a) to work out the amount of the gain for a *taxing event generating a gain under:
 (i) section 725‑245; or
 (ii) item 2, 4 or 7 of the table in subsection 725‑335(3); and
 (b) to work out the decrease in *adjustable value of a *down interest under:
 (i) item 1, 2, 3, 4 or 6 of the table in subsection 725‑250(2); or
 (ii) item 1, 2, 4 or 7 of the table in subsection 725‑335(3).

      Method statement
           Step 1. Group together all *down interests that:

                (a) are of the kind referred to in the relevant item; and
                (b) immediately before the *decrease time, had the same *adjustable value as the down interest; and
                (c) immediately before that time had the same *market value as the down interest; and
                (d) sustained the same decrease in market value as the down interest because of the *direct value shift.

           Step 2. Work out the value shifted from that group of *down interests to the *up interests referred to in the relevant item using the following formula:

           Step 3. Work out the notional adjustable value of the value shifted from that group of *down interests to those *up interests using the formula:

           Step 4. The decrease in the *adjustable value of the *down interest under the relevant item is equal to:

           Step 5. For a *taxing event generating a gain under the relevant item, the amount of the gain is equal to:

725‑370  Uplifts in adjustable values of up interests under certain table items
  Use the following method statement to work out the uplift in *adjustable value of an *up interest under:
 (a) item 1 or 2 of the table in subsection 725‑250(2); or
 (b) item 1 of the table in subsection 725‑335(3).

      Method statement
           Step 1. If the *market value of the *up interest increases because of the *direct value shift, group together all up interests of the kind referred to in the relevant item that:

                (a) immediately before the *increase time, had the same *adjustable value as the up interest; and
                (b) sustained the same increase in market value as the up interest because of the *direct value shift.

            If the *up interest is issued at a *discount, group together all *up interests of the kind referred to in the relevant item that:

                (c) immediately before the *increase time, had the same *adjustable value as the up interest; and
                (d) because of the direct value shift, are issued at the same discount as the up interest.

           Step 2. The notional adjustable value of the value shifted from the *down interests referred to in the relevant item to all the