INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-A - General exemptions  

Anti-overlap provisions

SECTION 118-27   Division 230 financial arrangements and financial arrangements to which Subdivision 250-E applies  

118-27(1)  
A *capital gain or *capital loss you make:


(a) from a *CGT asset; or


(b) in creating a CGT asset; or


(c) from the discharge of a liability;

is disregarded if, at the time of the *CGT event, the asset or liability is, or is part of, a *Division 230 financial arrangement.

Note 1:

Paragraph (b) is relevant for CGT event D1.

Note 2:

Paragraph (c) is relevant for CGT event L7.

118-27(2)  
Subsection (1) does not apply to the following:


(a) a gain or loss that subsection 230-310(4) (which deals with hedging financial arrangements) provides is to be treated as a *capital gain or *capital loss;


(b) a loss that is reduced under subsection 230-465(2) , to the extent of that reduction (this is the extent to which the loss is of a capital nature).

118-27(3)  
Subsection (1) does not apply if the situation that gives rise to the *CGT event does not result in a gain from the arrangement being included in your assessable income under Division 230 , or in a loss from the arrangement entitling you to a deduction under Division 230 .

118-27(4)  


A *capital gain or *capital loss you make from a *CGT asset is disregarded if, at the time of the *CGT event, the asset is, or is part of, a *financial arrangement to which Subdivision 250-E applies.

 

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.