Income Tax Assessment Act 1997
This table sets out what happens if:
(a) the lessee of land *acquires the reversionary interest of the lessor in the land; and
(b) Subdivision 124-J (roll-over provisions for Crown leases) does not apply to the acquisition.
|Lessee acquires reversionary interest of lessor|
|Item||In this situation:||The lessee is taken to have *acquired the land at this time:||The lessee is taken to have acquired the land for:|
|1||The lease was originally granted for 99 years or more||When the lease was granted or assigned to the lessee||Any premium the lessee paid for the grant or assignment of the lease, plus the amount the lessee paid to *acquire the reversionary interest|
|2||The lease was originally granted for less than 99 years||When the lessee *acquired the reversionary interest||(a)||if the lessee *acquired the lease after 19 September 1985 - any premium the lessee paid for the grant or assignment of the lease, plus the amount the lessee paid to acquire the reversionary interest; or|
|(b)||if the lessee acquired the lease before 20 September 1985 - the *market value of the land when the lessee acquired it|
All the payments can include giving property: see section 103-5 .
CGT events F1 to F5 deal specifically with leases. See also (in particular) CGT event C2 (about cancellation, surrender and similar endings).
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