Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 3/8)
Character Range: 2127160–2129604

a *CGT asset from a *CGT event is not a discount capital gain (despite section 115‑5) if the CGT event occurred under an agreement you made within 12 months of *acquiring the CGT asset.
Note: Section 115‑30 or 115‑34 may affect the time when you are treated as having acquired the CGT asset.

115‑45  Capital gain from equity in an entity with newly acquired assets

Purpose of this section
 (1) The purpose of this section is to deny you a *discount capital gain on your *share in a company or interest in a trust if you would not have had *discount capital gains on the majority of *CGT assets (by cost and by value) underlying the share or interest if:
 (a) you had owned them for the time the company or trust did; and
 (b) *CGT events had happened to them when the CGT event happened to your share or interest.

When a capital gain is not a discount capital gain
 (2) Your *capital gain from a *CGT event happening to:
 (a) your *share in a company; or
 (b) your *trust voting interest, unit or other fixed interest in a trust;
is not a discount capital gain if the 3 conditions in subsections (3), (4) and (5) are met. This section has effect despite section 115‑5 and subsection 115‑30(2).
Note: This section does not prevent a capital gain from being a discount capital gain if there are at least 300 members or beneficiaries of the company or trust and control of the company or trust is not and cannot be concentrated (see section 115‑50).

You had at least 10% of the equity in the entity before the event
 (3) The first condition is that, just before the *CGT event, you and your *associates beneficially owned:
 (a) at least 10% by value of the *shares in the company (except shares that carried a right only to participate in a distribution of profits or capital to a limited extent); or
 (b) at least 10% of the *trust voting interests, issued units or other fixed interests (as appropriate) in the trust.

Cost bases of new assets are more than 50% of all cost bases of entity's assets
 (4) The second condition is that the total of the *cost bases of *CGT assets that the company or trust owned at the time of the *CGT event and had *acquired less than 12 months before then is more than half of the total of the *cost bases of the *CGT assets the company or trust owned at the time of the event.
Note: Sections 115‑30 and 115‑32, or section 115‑34, may affect the time when the company or trust is treated as having acquired a