Document ID: chunk:federal_register_of_legislation:C2010C00406:clause:3_1:p9
Version: federal_register_of_legislation:C2010C00406
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 9/12)
Character Range: 52948–55672

the trustee of the lost policy holders trust if the asset is covered by section 316‑110.

 (4) The beneficiary of the lost policy holders trust is taken to have *acquired the asset when the trustee acquired it.

316‑175  Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust

 (1) This section applies in relation to a *capital gain from a *CGT event if:
 (a) the CGT event happens in relation to a demutualisation asset that:
 (i) is a *share or a right to *acquire a share; and
 (ii) is held by the trustee of a lost policy holders trust; and
 (b) section 316‑170 does not apply to the CGT event.

 (2) For the purposes of sections 97, 98A and 100 of the Income Tax Assessment Act 1936, the share of the net income of the trust that is attributable to the *capital gain is taken not to be included in the assessable income of a beneficiary of the trust.

 (3) The trustee is not assessed, and is not liable to pay tax, in respect of the share under section 98 of the Income Tax Assessment Act 1936.

Note: Because of these consequences in relation to sections 97 and 98 of the Income Tax Assessment Act 1936, the trustee will be assessed on the beneficiary's share under section 99A of that Act.

316‑180  Subdivision 126‑E does not apply

  Subdivision 126‑E does not apply in relation to the demutualisation.

Note: Subdivision 126‑E is about an entitlement to shares after demutualisation and scrip for scrip roll‑over.

Subdivision 316‑E—Special CGT rules for legal personal representatives and beneficiaries

Table of sections

316‑200 Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate
316‑205 Interest in lost policy holders trust not owned by deceased but passing to beneficiary in deceased estate

316‑200  Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate

 (1) This section sets out what happens if a *CGT asset:
 (a) is a demutualisation asset (see section 316‑110); and
 (b) forms part of the estate of an individual who is an entity described in subsection 316‑115(1) and has died; and
 (c) was not owned by the individual just before dying; and
 (d) *passes to a beneficiary in the individual's estate because the asset is transferred to the beneficiary by the individual's *legal personal representative.

Note: Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying.

Consequence for legal personal representative

 (2) Disregard a *capital gain or *capital loss the *legal personal representative makes because the asset *passes to the beneficiary.

Consequence for beneficiary

 (3) The *cost base and *reduced cost