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Rollover relief available

Last updated 3 March 2016

To choose rollover relief, the demerger must be an eligible demerger. The head entity will usually advise you of this.

If you choose rollover relief:

  • you disregard any capital gain or capital loss made under the demerger, and
  • your new interests in the demerged entity are acquired on the date of the demerger. However, if a proportion of your original interests was acquired before 20 September 1985 (pre-CGT), the same proportion of your new interests in the demerged entity is treated as pre-CGT assets.

If you do not choose rollover relief:

  • you cannot disregard any capital gain or capital loss made under the demerger, and
  • all your new interests in the demerged entity are acquired on the date of the demerger.

QC27527