Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p18
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 18/19)
Character Range: 43902–46427

business roll‑over.

Note: If a replacement asset is an active asset and its status subsequently changes, you may make a capital gain: see section 104‑185 (CGT event J2). Special rules apply if you die: see section 152‑425.

 (5) If a replacement asset is a *share in a company or an interest in a trust, you, or an entity *connected with you, must be a *controlling individual of the company or trust just after you *acquire the share or interest.

Example: Joseph owns 50% of the shares in Company A and Company B. He is therefore a controlling individual of the companies (see section 152‑55). The companies are connected with Joseph (see section 152‑30) because he controls both of them.

 Company A owns land which it leases to Joseph for use in a business. It sells the land at a profit and buys shares in Company B.

 The replacement asset test is satisfied because Joseph is connected with Company A and is a controlling individual of Company B.

Note: If a replacement asset is a share in a company and the status of the company changes, or you or an entity connected with you ceases to be its controlling individual, you may make a capital gain: see section 104‑190 (CGT event J3). Special rules apply if you die: see section 152‑425.

152‑425  Rules where an individual who has obtained a roll‑over dies

 (1) If a replacement asset that formed part of the estate of an individual who has died has devolved to the deceased's *legal personal representative and:
 (a) the status of the replacement asset did not change in any of the ways covered by subsection 104‑185(1) while the deceased owned it; or
 (b) if the replacement asset is a *share in a company or an interest in a trust, the circumstances of the company or trust did not change in any of the ways covered by subsection 104‑190(1) while the share or interest was in the hands of the deceased;
then, for the purposes of this Subdivision, anything done or not done by the deceased in relation to the asset is treated as though it had been done or not done by the legal personal representative.

 (2) If the replacement asset has passed to a beneficiary of the deceased individual and:
 (a) the status of the replacement asset did not change in any of the ways covered by subsection 104‑185(1) while the deceased owned it; or
 (b) if the replacement asset is a *share in a company or an interest in a trust, the circumstances of the company or trust did not change in any of the ways covered by subsection 104‑190(1) while the share or interest was in the