Assets transferred by a company or trust
If a company or a trustee of a trust transfers a capital gains tax (CGT) asset to a spouse, adjustments are required to the relevant cost base and reduced cost base of interests in the company or trust. These interests may be shares (or indirect interests in shares) in the company, units in a unit trust and other interests in the trust. They are reduced in value by an amount that reasonably reflects the fall in their market value as a result of the transfer of the CGT asset.
Note: In certain circumstances, the transfer of an asset from a company to a spouse who is a shareholder or an associate of a shareholder may be a dividend. For more information, see the fact sheet Division 7A – overview.
If the transferor is a controlled foreign corporation or a foreign trust, there are special rules for working out the capital gain or capital loss in relation to a subsequent CGT event.
For help applying this to your own situation, phone 13 28 61.
If you transfer an asset to your spouse (or if you have an asset transferred to you) as a result of the breakdown of your marriage or relationship, capital gains tax rollover may apply.