Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-E - Special CGT rules for legal personal representatives and beneficiaries  

SECTION 316-200   Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate  

316-200(1)    
This section sets out what happens if a *CGT asset:

(a) is a demutualisation asset (see section 316-110 ); and

(b) forms part of the estate of an individual who is an entity described in subsection 316-115(1) and has died; and

(c) was not owned by the individual just before dying; and

(d) *passes to a beneficiary in the individual ' s estate because the asset is transferred to the beneficiary by the individual ' s *legal personal representative.

Note:

Division 128 deals with the effect of death in relation to CGT assets a person owns just before dying.

Consequence for legal personal representative

316-200(2)    
Disregard a *capital gain or *capital loss the *legal personal representative makes because the asset *passes to the beneficiary.

Consequence for beneficiary

316-200(3)    
The *cost base and *reduced cost base of the asset in the hands of the *legal personal representative just before the asset *passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary.

316-200(4)    
The beneficiary is taken to have *acquired the asset when the *legal personal representative acquired it.