Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:1_2
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 1 cl 2
Character Range: 9905–11977

2                                     You *acquire shares in a company in exchange for the redemption of an *exchangeable interest.                                                      The first element of the *cost base of the shares is the sum of:
                                                                                                                                                                                         (a) the cost base of the exchangeable interest at the time of the redemption; and
                                                                                                                                                                                         (b) any amount paid for the exchange, except to the extent that the amount is represented in the paragraph (a) amount; and
                                                                                                                                                                                         (c) all the amounts to be added under subsection (2).
                                                                                                                                                                                         The first element of their *reduced cost base is worked out similarly.

 (2) An amount is to be added under this subsection if a *capital gain on the disposal or redemption of the exchangeable interest has been reduced under section 118‑20. This is so even though a capital gain that is made on the disposal or redemption of the exchangeable interest is disregarded under subsection (4). The amount to be added is the amount of the reduction.

 (3) The payment for the exchange can include giving property (see section 103‑5).

Other CGT consequences

 (4) The table has effect:

Exchange of an exchangeable interest
Item                                  In this situation:                                                                                                                                 This is the result: