INCOME TAX ASSESSMENT ACT 1997
Pt 3-1 inserted by No 46 of 1998.
Div 115 inserted by No 169 of 1999.
To be a *discount capital gain, the *capital gain must result from a *CGT event happening to a *CGT asset that was *acquired by the entity making the capital gain at least 12 months before the CGT event.
Even if the capital gain results from a CGT event happening at least a year after the CGT asset was acquired, the gain may not be a discount capital gain, depending on the cause of the CGT event (see section 115-40 ) and the nature of the asset (see sections 115-45 and 115-50 ).
S 115-25(1) amended by No 56 of 2010, s 3 and Sch 6 items 139 and 140, by substituting " Note 1 " for " Note " in the note and inserting note 2, applicable to assessments for the income years including 21 September 1999 and for later income years, in relation to CGT events happening after 11.45 am (by legal time in the Australian Capital Territory) on that day.
To avoid doubt, subsection (1) applies to the *CGT asset shown in the table for a *CGT event listed in the table.
|CGT assets to which subsection (1) applies|
|Item||CGT event||CGT asset to which subsection (1) applies|
|1A||D4||the land over which the *conservation covenant is entered into|
|1||E8||the interest or part interest in the trust capital|
|2||K6||the *share or interest *acquired before 20 September 1985|
S 115-25(2) (table) amended by No 167 of 2001.
If the *capital gain results from a *CGT event K9 happening:
(a) subsection (1) does not apply; and
(b) to be a *discount capital gain, the *carried interest to which the CGT event relates must arise under a partnership agreement entered into at least 12 months before the CGT event.
S 115-25(2A) inserted by No 136 of 2002.
A *capital gain from one of these *CGT events is not a discount capital gain (despite section 115-5 ):
(a) *CGT event D1;
(b) *CGT event D2;
(c) *CGT event D3;
(d) *CGT event E9;
(e) *CGT event F1;
(f) *CGT event F2;
(g) *CGT event F5;
(h) *CGT event H2;
(ha) *CGT event J2;
(hb) *CGT event J5;
(hc) *CGT event J6;
(i) *CGT event K10.
Capital gains from the CGT events mentioned in paragraphs (3)(a) to (f) are not discount capital gains because the CGT asset involved in the CGT event comes into existence at the time of the event, so it is impossible to meet the requirement in this section that the asset have been acquired at least 12 months before the event.
S 115-25(3) amended by No 55 of 2007 , s 3 and Sch 1 item 16, by substituting paras (hb) and (hc) for para (hb), applicable to CGT events happening in the 2006-07 income year or later income years. Para (hb) formerly read:
(hb) *CGT event J3.
S 115-25(3) amended by No 133 of 2003, No 77 of 2001 and No 165 of 1999.
S 115-25 inserted by No 169 of 1999.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.