Income Tax Assessment Act 1997



Division 126 - Same-asset roll-overs  

Subdivision 126-G - Transfer of assets between certain trusts  

Operative provisions

SECTION 126-225   When a roll-over may be chosen  

A roll-over may be chosen for a *CGT asset (the roll-over asset ) if:

(a) the trustee of a trust (the transferring trust ):

(i) creates a trust (the receiving trust ), by declaration or settlement, over one or more CGT assets that include the roll-over asset; or

(ii) transfers the roll-over asset to an existing trust (the receiving trust );
at a particular time (the transfer time ); and

(b) if subparagraph (a)(ii) applies - the receiving trust has no CGT assets immediately before the transfer time, other than any or all of the following:

(i) small amounts of cash or debt;

(ii) its rights under an *arrangement, if (collectively) those rights only facilitate the transfer of assets to it from the transferring trust; and

(c) just after the transfer time:

(i) each of the trusts has the same beneficiaries; and

(ii) the receiving trust has the same *classes of *membership interests that the transferring trust had just before, and has just after, the transfer time; and

(iii) the sum of the *market values of each beneficiary ' s membership interests of a particular class in both trusts is substantially the same as the sum of the market values, just before the transfer time, of the beneficiary ' s membership interests of that class in both trusts; and

(d) the requirement in section 126-230 is met; and

(e) the exceptions in section 126-235 do not apply.

Exception if other roll-over assets already transferred

However, paragraph (1)(b) does not apply if:

(a) the roll-over asset is transferred to the receiving trust under an *arrangement; and

(b) the roll-over asset was an asset of the transferring trust just before the arrangement was made; and

(c) at least one other asset of the receiving trust:

(i) is an asset for which a roll-over was obtained under this Subdivision for the trusts; and

(ii) is an asset over which the receiving trust was created, or was transferred by the transferring trust to the receiving trust under the arrangement; and

(d) the transfer time is in the income year for the transferring trust that includes the earliest transfer time (the start time ) for the assets covered by paragraph (c).

Obtaining the roll-over

The roll-over only happens if both the trustee of the transferring trust and the trustee of the receiving trust choose to obtain it.

View surrounding sectionsView surrounding sectionsBack to top

This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.