CGT Determination Number 26

TD 26

Capital Gains: Where a pre-CGT lease is renewed post-CGT, what is the time of acquisition of the new lease?

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FOI status:

1. Section 160ZU provides that the renewal of a lease is deemed for CGT purposes to constitute the grant by the lessor of a new lease that took effect immediately after the time when the original lease would, but for the renewal, have expired.

2. Where a lease granted pre-CGT is renewed post-CGT, the new lease which the lessee owns is taken to have been acquired post-CGT. Any subsequent disposal of the new lease by the lessee may be subject to the CGT provisions .

Commissioner of Taxation
31 October 1991

References

ATO references:
NO N.O. TLG CGT 290591

Subject References:
Renewal of a lease

Legislative References:
160ZU