Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/5)
Character Range: 284449–287042

have made from the *CGT event apart from this Subdivision.

non‑main residence days is the number of days in that period when the *dwelling was not the individual's main residence.

 (5) Only these *CGT events are relevant:

 (a) CGT events A1, B1, C1, C2, E1, E2, F2, I1, I2, K3, K4 and K6 (except one involving the forfeiting of a deposit); and

 (b) a CGT event that involves the forfeiting of a deposit as part of an uninterrupted sequence of transactions ending in one of the events specified in paragraph (a) subsequently happening.

Note: The full list of CGT events is in section 104‑5.

Subdivision 118‑C—Goodwill

Table of sections

118‑250 Exempting part of a capital gain attributable to goodwill
118‑255 Exception
118‑260 Meaning of business exemption threshold and indexation

118‑250  Exempting part of a capital gain attributable to goodwill

 (1) If there is a change in the ownership of a *business of an entity (the primary business) or its interest in it or that business or interest ends, and the entity makes a *capital gain attributable to the goodwill of the primary business, half of the capital gain is disregarded.

 (2) However, that part of the *capital gain is disregarded only if the sum of:

 (a) the *net value of the primary business and the net values of *businesses that are *related businesses at the time the *capital gain is made; or

 (b) the values of the entity's interests in the net value of the primary business and the net values of *businesses that are *related businesses at that time;

is less than the *business exemption threshold for the income year in which the *CGT event occurred.

 (3) A *business is a related business of the primary business if it is carried on by:

 (a) the individual who carries on the primary business; or

 (b) the company that carries on the primary business or by a company that is a member of the same *wholly‑owned group.

 (4) If the primary business is carried on by the trustee of a trust (the first trust), a *business is a related business of the primary business if it is carried on by:

 (a) the first trust; or

 (b) another trust having the same trustee where an entity that benefits or is capable of benefiting under the first trust benefits or is capable of benefiting under the other trust; or

 (c) any other trust having the same trustee where:

 (i) the other trust is one of a series of trusts that includes the first trust; and

 (ii) each trust in the series (also the first trust) is linked to at least one other trust in the series in that an entity that benefits or