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-L - Prospecting and mining entitlements  

Operative provisions

SECTION 124-720   Part of original entitlement excised  

124-720(1)    
There is partial roll-over if you *acquired the original entitlement on or after 20 September 1985 and:

(a) the land to which the new entitlement relates is different in area to the land the subject of the original entitlement because a part (the excised part ) of the land to which the original entitlement related was excised or you relinquished it; and

(b) you received a payment for the expiry or surrender of the original entitlement.

The payment can include giving property: see section 103-5 .

Note:

Section 124-730 sets out the effect on your cost base.

124-720(2)    
There is no roll-over for the excised part. The *cost base of the excised part is so much of the *cost base of the original entitlement as is attributable to the excised part.

Its *reduced cost base is worked out similarly.

Note:

You may make a capital gain or loss on the excised part because of CGT event C2.