Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/29)
Character Range: 2223076–2225601

118‑25  Trading stock
 (1) A *capital gain or *capital loss you make from a *CGT asset is disregarded if, at the time of the *CGT event, the asset is:
 (a) your *trading stock; or
 (b) if you are a partner, trading stock of the partnership; or
 (c) if you are absolutely entitled to the asset as against the trustee of a trust (disregarding any legal disability), trading stock of the trustee.
 (2) A *capital gain or *capital loss you make in these circumstances is disregarded:
 (a) you start holding as *trading stock a *CGT asset you already own but do not hold as trading stock; and
 (b) you elect under paragraph 70‑30(1)(a) to be treated as having sold the asset for its cost (worked out under that section).
Note 1: Paragraph 70‑30(1)(a) allows you to elect the cost of the asset, or its market value, just before it became trading stock.
Note 2: You may make a capital gain or loss if you elect its market value: see CGT event K4.

118‑27  Division 230 financial arrangements and financial arrangements to which Subdivision 250‑E applies
 (1) A *capital gain or *capital loss you make:
 (a) from a *CGT asset; or
 (b) in creating a CGT asset; or
 (c) from the discharge of a liability;
is disregarded if, at the time of the *CGT event, the asset or liability is, or is part of, a *Division 230 financial arrangement.
Note 1: Paragraph (b) is relevant for CGT event D1.
Note 2: Paragraph (c) is relevant for CGT event L7.
 (2) Subsection (1) does not apply to the following:
 (a) a gain or loss that subsection 230‑310(4) (which deals with hedging financial arrangements) provides is to be treated as a *capital gain or *capital loss;
 (b) a loss that is reduced under subsection 230‑465(2), to the extent of that reduction (this is the extent to which the loss is of a capital nature).
 (3) Subsection (1) does not apply if the situation that gives rise to the *CGT event does not result in a gain from the arrangement being included in your assessable income under Division 230, or in a loss from the arrangement entitling you to a deduction under Division 230.
 (4) A *capital gain or *capital loss you make from a *CGT asset is disregarded if, at the time of the *CGT event, the asset is, or is part of, a *financial arrangement to which Subdivision 250‑E applies.

118‑30  Film copyright
 (1) A *capital gain or *capital loss you make from a *CGT event relating to your interest in the copyright in a film is disregarded if an amount is included in your assessable income under section 26AG (about film proceeds)