Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-35 - INSURANCE BUSINESS  

Division 320 - Life insurance companies  

Subdivision 320-C - Deductions and capital losses  

Operative provisions

SECTION 320-120   Capital losses from assets other than complying superannuation assets or segregated exempt assets  

320-120(1)    

This section applies to assets ( ordinary assets ) of a * life insurance company other than:

(a) * complying superannuation assets; or

(b) * segregated exempt assets.

320-120(2)    
In working out a * life insurance company ' s * net capital gain or * net capital loss for the income year, * capital losses from ordinary assets can be used only to reduce * capital gains from ordinary assets.

320-120(3)    
If some or all of a * capital loss from an ordinary asset cannot be applied in an income year, the unapplied amount can be applied in the next income year in which the company ' s * capital gains from ordinary assets exceed the company ' s capital losses (if any) from ordinary assets.

320-120(4)    
If the company has 2 or more unapplied * net capital losses from ordinary assets, the company must apply them in the order in which they were made.

Note:

This section affects the amount of assessable income that is to be taken into account in working out a taxable income or tax loss of the ordinary class: see sections 320-139 and 320-143 .