Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p7
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 7/12)
Character Range: 48015–50839

transferred to beneficiary of lost policy holders trust
316‑175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust
316‑180 Subdivision 126‑E does not apply

Application

316‑155  Lost policy holders trust

 (1) This Subdivision applies if the conditions in subsections (2) and (5) are met.

First condition

 (2) The first condition is that the scheme approved by a court for the demutualisation provides for a trust (the lost policy holders trust) to exist solely for one or both of the purposes that are described in subsection (3) in relation to persons (beneficiaries of the lost policy holders trust) covered by subsection (4).

 (3) The purposes are as follows:
 (a) holding demutualisation assets (see section 316‑110) that are *shares or rights to *acquire shares, or proceeds from disposal of those assets, on behalf of one or more beneficiaries of the lost policy holders trust and transferring those assets or proceeds to those beneficiaries;
 (b) holding on behalf of one or more beneficiaries of the lost policy holders trust, and paying to them, money payable to them for:
 (i) the variation or abrogation of rights attaching to or consisting of the beneficiaries' interests affected by demutualisation (see paragraph 316‑55(1)(b)); or
 (ii) the conversion, cancellation, extinguishment or redemption of those interests.

 (4) This subsection covers:
 (a) a person who is or has been a *member of the friendly society or is or has been insured through the *friendly society or a health/life insurance subsidiary of the friendly society; and
 (b) a *legal personal representative, or beneficiary in the estate, of such a person who has died.

Second condition

 (5) The second condition is that, under the demutualisation, the trustee of the lost policy holders trust is:
 (a) issued with demutualisation assets that are *shares, or rights to *acquire shares; or
 (b) paid money described in paragraph (3)(b) to hold and pay to beneficiaries of the lost policy holders trust.

Effects of CGT events happening to interests and assets in trust

316‑160  Disregarding beneficiaries' capital gains and losses, except some involving receipt of money

  Disregard a *capital gain or *capital loss of a beneficiary of the lost policy holders trust from a *CGT event that happens to the beneficiary's interest in the trust.

316‑165  Taking account of some capital gains and losses involving receipt of money by beneficiaries

 (1) This section applies if:
 (a) a *CGT event happens to an interest of a beneficiary of the lost policy holders trust in that trust; and
 (b) the *capital proceeds from the event include or consist of money received by the beneficiary.

 (2) Work out whether the beneficiary makes a *capital gain or *capital loss from the *CGT