Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 6/17)
Character Range: 247666–250305

*capital proceeds from the event were the asset's market value that was taken into account in working out that net previous income.

If the gain exceeds that amount, it is reduced by that amount.

Exceptions

 (5) The gain is not reduced if an amount is included in your assessable income, or the assessable income of the partnership, for any income year because of a balancing adjustment.

 (6) The gain is not reduced if an amount is included in your *exempt income under section 23AJ (about exempting certain non‑portfolio dividends paid by non‑resident companies) of the Income Tax Assessment Act 1936 because a company pays a *dividend to you that is:

 (a) debited against a share capital account of the company; or

 (b) debited against an account to which the company has credited amounts because of share premiums it received on shares issued by it (even if an amount that is not a share premium, or that cannot be identified as one in the company's books, has also been credited to the account); or

 (c) debited against an asset revaluation reserve of the company; or

 (d) directly or indirectly attributable to amounts transferred from such an account or reserve of the company.

118‑22  Eligible termination payments

  In applying section 118‑20, if any part of an *eligible termination payment is included in your assessable income, the whole of the payment is taken to be included.

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.

118‑30  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:

 (a) an amount is included in your assessable income under section 26AG (about film proceeds) of the