Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 14/22)
Character Range: 2178232–2181378

230‑505 of this Act (Division 230 financial arrangement as consideration for provision or acquisition of a thing) also modifies capital proceeds.

General rules

116‑20  General rules about capital proceeds
 (1) The capital proceeds from a *CGT event are the total of:
 (a) the money you have received, or are entitled to receive, in respect of the event happening; and
 (b) the *market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).
Note 1: The timing rules for each event are in Division 104.
Note 2: In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103‑10.
Note 3: If you dispose of shares in a buy‑back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936.
 (2) This table sets out what the capital proceeds from *CGT events F1, F2, H2 and K9 are:

General rules about capital proceeds
Event number                          Description of event:
                                                                                              The capital proceeds are:
F1                                    Granting, renewing or extending a lease                 Any premium paid or payable to you for the grant, renewal or extension
F2                                    Granting, renewing or extending a long‑term lease       The greatest of:
                                                                                              (a) the *market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and
                                                                                              (b) what would have been that market value if you had not granted, renewed or extended the lease; and
                                                                                              (c) any premium paid or payable to you for the grant, renewal or extension
H2                                    Receipt for event relating to a CGT asset               The money or other consideration you received, or are entitled to receive, because of the act, transaction or event
K9                                    Entitlement to receive payment of a *carried interest   The amount of the payment, to the extent that it is a payment of the *carried interest

 (3) In working out the *market value of the property the subject of the grant, renewal or extension of a long‑term lease:
 (a) include the market value of any building, part of a building, structure or improvement that is treated as a separate *CGT asset from the property; and
 (b) disregard any *depreciating assets for whose decline in value the lessor has deducted or can deduct an amount under this Act.
Note: Subdivision 108‑D sets out when a building, structure or improvement is treated as a separate CGT asset.
 (4) In working out the amount of any premium paid or payable to the lessor for the grant, renewal or extension of a long‑term lease, disregard any part of it that is attributable to a