Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 17/20)
Character Range: 1817671–1820277

element of the asset's *cost base and *reduced cost base in your hands is its *market value when the asset is transferred.

Exceptions
 (5) CGT event E2 does not happen if you are the sole beneficiary of the trust and:
 (a) you are absolutely entitled to the asset as against the trustee (disregarding any legal disability); and
 (b) the trust is not a unit trust.
 (6) A *capital gain or *capital loss you make is disregarded if you *acquired the asset before 20 September 1985.

104‑65  Converting a trust to a unit trust: CGT event E3
 (1) CGT event E3 happens if:
 (a) a trust (that is not a unit trust) over a *CGT asset is converted to a unit trust; and
 (b) just before the conversion, a beneficiary under the trust was absolutely entitled to the asset as against the trustee (disregarding any legal disability the beneficiary is under).
 (2) The time of the event is when the trust is converted.
 (3) The beneficiary makes a capital gain if the *market value of the asset (when the trust is converted) is more than the asset's *cost base. The beneficiary makes a capital loss if that market value is less than the asset's *reduced cost base.

Exception
 (4) A *capital gain or *capital loss the beneficiary makes is disregarded if it *acquired the asset before 20 September 1985.

104‑70  Capital payment for trust interest: CGT event E4
 (1) CGT event E4 happens if:
 (a) the trustee of a trust makes a payment to you in respect of your unit or your interest in the trust (except for *CGT event A1, C2, E1, E2, E6 or E7 happening in relation to it); and
 (b) some or all of the payment (the non‑assessable part) is not included in your assessable income.
To avoid doubt, in applying paragraph (b) to work out what part of the payment is included in your assessable income, disregard your share of the trust's net income that is subject to the rules in subsection 115‑215(3).
Note 1: Subsections 104‑71(1) (tax‑exempted amounts), 104‑71(3) (tax‑free amounts) and 104‑71(4) (CGT concession amounts) can affect the calculation of the non‑assessable part.
Note 2: The non‑assessable part includes amounts (tax‑deferred amounts) associated with the small business 50% reduction, frozen indexation, building allowance and accounting differences in income.
Note 3: A payment made to you after you stop owning the unit or interest in the trust forms part of the capital proceeds for the CGT event that happened when you stopped owning it.
 (1A) However, CGT event E4 does not happen if the unit or interest mentioned in subsection (1) is a unit or interest in an *AMIT.
 (2) The payment can include giving