Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/30)
Character Range: 6146261–6149174

3                                      less than or equal to its *reduced cost base                         its reduced cost base

Allocating partnership cost pool to partnership assets that are not retained cost base assets
 (3) Work out the *tax cost setting amounts for the assets mentioned in paragraph (1)(c) by applying sections 705‑35, 705‑40, 705‑45 and 705‑47 to those assets, as if:
 (a) the partnership were, at the joining time, the joining entity mentioned in those sections; and
 (b) the assets of the partnership were the assets covered by subsection 713‑235(3); and
 (c) the allocable cost amount mentioned in paragraph 705‑35(1)(a) were the partnership cost pool.
 (4) For the purposes of this section, section 104‑510 (CGT event L3) applies as if the group's allocable cost amount for the entity mentioned in that section were the partnership cost pool.

Special rules where partnership leaves consolidated group

713‑250  Partnership leaves group—standard provisions modified
 (1) This section applies if a partnership ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time).
Note: The section applies whether or not any partner that is a subsidiary member of the group also ceases to be a subsidiary member at the leaving time.
 (2) Apply the provisions mentioned in subsection 713‑205(5) subject to the modifications in the provisions that follow under this *group heading.

713‑255  Partnership leaves group—tax cost setting amount for partnership cost setting interests

Overview
 (1) Instead of working out *tax cost setting amounts for *membership interests in the partnership, a special rule requires *partnership cost setting interests in the partnership to be worked out. Where other entities cease to be *subsidiary members at the same time, the normal tax cost setting amount rules are applied for membership interests in the other entities, but the special rule is applied for partnership cost setting interests in the partnership.

Tax cost setting amounts for membership interests in partnership not to be worked out
 (2) Do not work out *tax cost setting amounts for *membership interests in the partnership.

Partnership is only entity that exits—tax cost setting amount for partnership cost setting interests
 (3) Except where the partnership ceases to be a *subsidiary member in circumstances covered by subsection (5), work out in accordance with subsection (4) the *tax cost setting amount just before the leaving time for each *partnership cost setting interest in the partnership held by a partner that is a *member of the group just before the leaving time.

Tax cost setting amount
 (4) The *tax cost setting amount is equal to the partner's individual share of the *terminating value of the partnership asset to which the *partnership cost setting interest relates.
Note: For income tax purposes there is no disposal by the head company