Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:3_6
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 3 cl 6
Character Range: 53931–55628

6  At the end of Division 104
Add:

Subdivision 104‑L—Consolidated groups

Table of sections

104‑500 Loss of pre‑CGT status of membership interests in entity becoming subsidiary member: CGT event L1

104‑500  Loss of pre‑CGT status of membership interests in entity becoming subsidiary member: CGT event L1

 (1) CGT event L1 happens if, under section 705‑57 (including in its application in accordance with Subdivisions 705‑B to 705‑E), there is a reduction in the *tax cost setting amount of assets of an entity that becomes a *subsidiary member of a *consolidated group.

 (2) The time of the event is just after the entity becomes a *subsidiary member of the group.

 (3) For the head company core purposes mentioned in subsection 701‑1(2), the *head company makes a capital loss equal to the reduction.

 (4) The amount of the capital loss that can be applied to reduce the head company's *capital gains for the first income year ending after the entity becomes a *subsidiary member of the group (the first income year) cannot exceed 1/5 of the *capital loss.

 (5) The amount of the *net capital loss from the first income year, to the extent the amount is attributable to the *capital loss (the extent being the event L1 attributable loss), that can be applied to reduce the head company's *capital gains for a later income year cannot exceed the amount worked out for the year using the following table:

Limit on applying event L1 attributable loss
Item                                           For this income year:                                                                                        The amount of the event L1 attributable loss that can be applied cannot exceed: