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Cost base of assets for companies which become CFCs after 30 June 1990

Last updated 4 December 2006

The cost base of assets owned by a company that became a CFC after 30 June 1990 is market value of those assets at the time the company became a CFC.

Example 24: Cost base of asset

A company that became a CFC on 1 March 1993 disposes of an asset on 1 October 1995. The asset was acquired on 1 May 1992.

Consequences

The asset will be deemed to have been acquired for market value on 1 March 1993 - that is, when the company became a CFC. The capital gain or capital loss is therefore worked out using the change in the asset's value between 1 March 1993 and 1 October 1995.

End of example

QC18000