INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17A - Roll-over relief for certain disposals of assets related to small businesses  

Subdivision B - How roll-over relief is available on the disposal of an asset  

SECTION 160ZZPX   CHANGE OF STATUS OF REPLACEMENT ASSET  

160ZZPX(1)   Change of status to which section applies.  

This section applies if:

(a) there is a roll-over asset in respect of a taxpayer in respect of a year of income; and

(b) there is a net roll-over amount that applies to the taxpayer in respect of the year of income; and

(c) a replacement asset is nominated by the taxpayer under section 160ZZPT in respect of the net roll-over amount; and

(d) at a time (the change time ) after the taxpayer nominated the replacement asset, the asset:

(i) if the replacement asset is not a share in a company or a unit in a unit trust - ceases to be an active asset; or

(ii) becomes an asset in respect of whose disposal this Part would not apply because of a provision of section 160L ; or

(iii) becomes an asset in respect of whose disposal a capital gain would not be taken to have been incurred because of subsection 160Z(6) .

160ZZPX(2)   Capital gain accrues when change of status occurs.  

An amount (the adjustment amount ) equal to the amount that was apportioned to the asset by the taxpayer under section 160ZZPU , 160ZZPV or 160ZZPW, as the case may be, is taken to be a capital gain that accrued to the taxpayer in the year of income in which the relevant change time occurred.

160ZZPX(3)   Consideration to be increased.  

If the replacement asset is not a depreciable asset, the amount that, at the time of the acquisition of the asset, was the consideration in respect of the acquisition of the asset is to be increased, at the change time, by the adjustment amount.