Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-C - Statutory licences  

SECTION 124-165   Roll-over consequences - some original licences were pre-CGT, others were post-CGT  

124-165(1)  
This section applies if:


(a) there was more than one original licence; and


(b) you *acquired one or more of the original licences before 20 September 1985; and


(c) you acquired one or more of the original licences on or after that day.

124-165(2)  
Each new licence is taken to be 2 separate *CGT assets that are both *statutory licences:


(a) one (which you are taken to have *acquired on or after 20 September 1985) representing the extent to which you acquired the original licences on or after that day; and


(b) another (which you are taken to have acquired before that day) representing the extent to which you acquired the original licences before that day.

124-165(3)  
The first element of the *cost base and *reduced cost base of the *CGT asset mentioned in paragraph (2)(a) in relation to a new licence is worked out under the formula:


Total post-CGT cost base × Market value of new licence
Market value of all new licences

where:

market value of all new licences
is the total of the *market values of all of the new licences.

market value of new licence
is the *market value of the new licence to which the *CGT asset mentioned in paragraph (2)(a) relates.

total post-CGT cost base
is the total of the *cost bases of all the original licences that you *acquired on or after 20 September 1985.


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