• Consequences of rollover applying

    Where you transfer the asset

    If you transfer the asset, the consequences of rollover are:

    • you disregard any capital gain or capital loss for assets acquired before 20 September 1985
    • for assets acquired on or after 20 September 1985, marriage or relationship breakdown rollover ensures you disregard any capital gain or capital loss you make from the capital gains tax (CGT) event that involves you and the transferee spouse.

    Where the asset is transferred to you

    Assets acquired before 20 September 1985

    If a CGT asset, including a share of a jointly owned asset, was transferred to you because of the breakdown of your marriage or relationship and it was acquired by the transferor before 20 September 1985, you are also taken to have acquired the asset before that date. You disregard any capital gain or capital loss you make when you later dispose of the asset.

    However, if you make a major capital improvement to that asset after 20 September 1985, you may be subject to CGT when you dispose of it or another CGT event happens to that asset (see Separate assets for CGT purposes).

    Assets acquired on or after 20 September 1985

    The rules are different if the asset was acquired by the transferor on or after 20 September 1985. In this case, if you receive the CGT asset (or a share of a jointly owned asset) and there is a marriage or relationship breakdown rollover, you are taken to have acquired the asset (or share of the asset) at the time it was transferred from your spouse (or the company or trustee).

      Last modified: 21 Jun 2016QC 17205