Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 10/20)
Character Range: 1801240–1803795

other entity at or before the end of the agreement; or
 (b) you *acquired the asset before 20 September 1985.

Subdivision 104‑C—End of a CGT asset

Table of sections
104‑20 Loss or destruction of a CGT asset: CGT event C1
104‑25 Cancellation, surrender and similar endings: CGT event C2
104‑30 End of option to acquire shares etc.: CGT event C3

104‑20  Loss or destruction of a CGT asset: CGT event C1
 (1) CGT event C1 happens if a *CGT asset you own is lost or destroyed.
Note: This event can apply to part of a CGT asset: see section 108‑5 (definition of CGT asset).
 (2) The time of the event is:
 (a) when you first receive compensation for the loss or destruction; or
 (b) if you receive no compensation—when the loss is discovered or the destruction occurred.
 (3) You make a capital gain if the *capital proceeds from the loss or destruction are more than the asset's *cost base. You make a capital loss if those capital proceeds are less than the asset's *reduced cost base.

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

104‑25  Cancellation, surrender and similar endings: CGT event C2
 (1) CGT event C2 happens if your ownership of an intangible *CGT asset ends by the asset:
 (a) being redeemed or cancelled; or
 (b) being released, discharged or satisfied; or
 (c) expiring; or
 (d) being abandoned, surrendered or forfeited; or
 (e) if the asset is an option—being exercised; or
 (f) if the asset is a *convertible interest—being converted.
 (2) The time of the event is:
 (a) when you enter into the contract that results in the asset ending; or
 (b) if there is no contract—when the asset ends.
 (3) You make a capital gain if the *capital proceeds from the ending are more than the asset's *cost base. You make a capital loss if those capital proceeds are less than the asset's *reduced cost base.
Note: The capital proceeds referred to in this subsection are reduced if the gain or loss was for shares and an amount was taken into account as a capital gain for the shares under former section 160ZL of the Income Tax Assessment Act 1936 for the 1997‑98 income year or an earlier income year: see section 104‑25 of the Income Tax (Transitional Provisions) Act 1997.
 (4) A lease is taken to have expired even if it is extended or renewed.

Exceptions
 (5) A *capital gain or *capital loss you make is disregarded if:
 (a) you *acquired the asset before 20 September 1985; or
 (b) for a lease that you granted:
 (i) it was granted before that day; or
 (ii)