Document ID: chunk:federal_register_of_legislation:C2010C00637:clause:3_7
Version: federal_register_of_legislation:C2010C00637
Segment Type: clause
Provision Reference: sch 3 cl 7
Character Range: 14085–15263

7  Subsection 152‑20(3)
Repeal the subsection, substitute:

 (3) Subsection (4) applies in working out the net value of the CGT assets of an entity that is:
 (a) your *small business CGT affiliate; or
 (b) *connected with your small business CGT affiliate.

 (4) Disregard assets of that entity that are not used, or held ready for use, in the carrying on of a *business (whether alone or jointly with others) by:
 (a) you; or
 (b) an entity *connected with you (unless the connection with you is only because of your *small business CGT affiliate).

Example: You and your husband decide to sell a florist's business that you jointly carry on. Your husband also wholly owns a company that carries on a newsagency business. You yourself have no other involvement with the newsagency business.

 You need to work out whether you satisfy the maximum net asset value just before the sale. For this purpose, you disregard the newsagency company's assets. This is because, even though the company is "connected" with you, in that your small business CGT affiliate (ie your husband) owns it (see section 152‑30), this connection arises only because your husband controls the company.