Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 6/58)
Character Range: 2314591–2317236

early stage venture capital limited partnership
 (4) A *limited partnership is an early stage venture capital limited partnership at a particular time if, at that time, the partnership's registration as an early stage venture capital limited partnership under Part 2 of the Venture Capital Act 2002 is, or is taken to have been, in force.
Note 1: For when the registration is, or is taken to have been, in force, see section 13‑10 of the Venture Capital Act 2002.
Note 2: In this Act and the Venture Capital Act 2002, the term "early stage venture capital limited partnership" is usually abbreviated to "ESVCLP".

Effect of converting convertible notes etc.
 (6) A partnership that acquired a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company is treated, for the purposes of subparagraph (1)(d)(ii), as having owned the share from the time when it last acquired the convertible note or convertible preference share.
 (7) A partnership that acquired a unit in a unit trust by converting a *convertible note issued by the trustee of the unit trust is treated, for the purposes of subparagraph (1)(d)(ii), as having owned the unit from the time when it last acquired the convertible note.
 (8) Subsection (6) or (7) applies whether or not the acquisition of the *convertible note, or convertible preference share, was an *eligible venture capital investment.
 (9) A partnership that converts a *convertible note into a share or a unit is treated, for the purposes of subparagraph (1)(d)(ii), as continuing to own the convertible note until the partnership no longer owns the share or unit.

118‑408  Partial exemption for some capital gains otherwise fully exempt under section 118‑407
 (1) Despite section 118‑407, you get only a partial exemption for a *capital gain from a *CGT event relating to an *eligible venture capital investment if:
 (a) apart from this section, all of your share in the capital gain from the CGT event relating to the investment would be disregarded under section 118‑407; and
 (b) at the end of an income year to which subsection (4) applies (a valuation year), the sum of the values of:
 (i) the assets of the company or unit trust in which the investment is made; and
 (ii) the assets of each other entity that is a *connected entity of the company or unit trust;
  exceeds $250 million; and
 (c) the CGT event happens after:
 (i) if there is only one valuation year—the end of the period of 6 months after the end of that valuation year; or
 (ii) if there is more than one valuation year—the end of the period of 6 months after the end of the earliest of