Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 152 - Small business relief  

Subdivision 152-A - Basic conditions for relief under this Division  

Treatment of passively held CGT assets

SECTION 152-49   Businesses that are winding up  

152-49(1)    
This section applies to an entity in an income year (the CGT event year ) if:

(a) a *business that the entity previously carried on (including in partnership) is being wound up in that year; and

(b) either:

(i) the asset was used, or held ready for use, in the course of carrying on the business at a time in the income year in which the business stopped being carried on; or

(ii) if the asset is an intangible asset - the asset was inherently connected with the business that was carried on at a time in the income year in which the business stopped being carried on.

152-49(2)    
For the purposes of paragraphs 152-40(1)(a) and (b) as they apply for the purposes of paragraphs 152-10(1A)(d) and (1B)(e) :

(a) the entity is taken to carry on the *business at a time in the CGT event year; and

(b) either:

(i) the *CGT asset is taken to be used, or held ready for use, in the course of carrying on the business at that time; or

(ii) if the asset is an intangible asset - the CGT asset is taken to be inherently connected with the business at that time.

Note:

The entity might also be taken to be a small business entity in the CGT event year (see subsection 328-110(5) ).