Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p41
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 41/41)
Character Range: 4341425–4343922

investment trust in relation to the income year would increase or reduce the amount of tax otherwise payable by the trustee, the *members of the trust or any other entity;
 (v) any other relevant matter.

Subdivision 275‑B—Choice for capital treatment of managed investment trust gains and losses

Table of sections
275‑100 Consequences of making choice—CGT to be primary code for calculating MIT gains or losses
275‑105 Covered assets
275‑110 MIT not to be trading trust
275‑115 MIT CGT choices
275‑120 Consequences of not making choice—revenue account treatment

275‑100  Consequences of making choice—CGT to be primary code for calculating MIT gains or losses
 (1) The modifications in subsection (2) apply if:
 (a) a *CGT event happens at a time involving a *CGT asset; and
 (b) the CGT asset is owned at that time by an entity that is a *managed investment trust in relation to the income year in which the time occurs; and
 (c) the CGT event happens because the managed investment trust *disposes of, ceases to own or otherwise realises the asset; and
 (d) the asset is covered by section 275‑105; and
 (e) the entity meets the requirement in section 275‑110 at the time; and
 (f) a choice under section 275‑115 covering the entity is in force for the income year in which the time occurs.
 (1A) Without limiting paragraph (1)(b), if:
 (a) a *VCLP or an *ESVCLP owns a *CGT asset at the time referred to in that paragraph; and
 (b) at that time, the *managed investment trust has an interest in the asset as a *limited partner of the VCLP or ESVCLP;
for the purposes of that paragraph, the managed investment trust is taken to own the asset to the extent of that interest.
 (2) These provisions do not apply to the *CGT event:
 (a) sections 6‑5 (about *ordinary income), 8‑1 (about amounts you can deduct), and 15‑15 and 25‑40 (about profit‑making undertakings or plans);
 (b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit‑making undertakings or schemes);
 (c) section 118‑20 (about reducing capital gains if amount otherwise assessable);
 (d) Division 70 and section 118‑25 (about trading stock).

General exceptions
 (3) The provisions referred to in subsection (2) can apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:

Where gain or loss disregarded because of CGT provision
Item                                                     Provision               Brief description