Document ID: chunk:federal_register_of_legislation:C2010C00577:clause:2_1:p1
Version: federal_register_of_legislation:C2010C00577
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/4)
Character Range: 31529–34219

1  At the end of Division 124
Add:

Subdivision 124‑N—Disposal of assets by a trust to a company

Guide to Subdivision 124‑N

124‑850  What this Subdivision is about

      Entities can choose to obtain a roll‑over if:

                (a) a trust disposes of all of its assets to a company; and
                (b) units and interests in the trust are replaced by shares in the company.
      The roll‑over may also be available for 2 or more trusts disposing of all their assets to a single company.

Note: The effect of the roll‑over may be reversed if the trust does not cease to exist within 6 months: see section 104‑195.

Table of sections

Operative provisions

124‑855 What this Subdivision deals with
124‑860 Requirements for roll‑over
124‑865 Entities both choose the roll‑over
124‑870 Roll‑over for owner of units or interests in a trust
124‑875 Effect on the transferor and transferee

[This is the end of the Guide.]

Operative provisions

124‑855  What this Subdivision deals with

 (1) A roll‑over may be available for a restructuring (a trust restructure) if:
 (a) a trust, or 2 or more trusts, (the transferor) *dispose of all of their *CGT assets to a company limited by *shares (the transferee); and
 (b) *CGT event E4 is capable of applying to all of the units and interests in the transferor; and
 (c) the requirements in section 124‑860 are met.

Note: A roll‑over is not available for a restructure undertaken by a discretionary trust.

 (2) For 2 or more transferors, units and interests in each transferor must be owned in the same proportions by the same beneficiaries.

Example: Matthew and Jaclyn each own 50% of the units in the Spring Unit Trust and the Dale Unit trust. All of the assets of both trusts are disposed of to Jonathon Pty Ltd. A roll‑over for a trust restructure is available if the other requirements of this Subdivision are met.

124‑860  Requirements for roll‑over

 (1) All of the *CGT assets owned by the transferor must be disposed of to the transferee during the *trust restructuring period. However, ignore any CGT assets retained by the transferor to pay existing or expected debts of the transferor.

 (2) The trust restructuring period for a trust restructure:
 (a) starts just before the first *CGT asset is *disposed of to the transferee under the trust restructure, which must happen on or after 11 November 1999; and
 (b) ends when the last CGT asset of the transferor is disposed of to the transferee.

 (3) The transferee must not be an *exempt entity.

 (4) The transferee must be a company that:
 (a) has never carried on commercial activities; and
 (b) has no *CGT assets other than small amounts of cash or debt; and