CGT Determination Number 57

TD 57

Capital Gains: How are compensation payments for the loss or destruction of an uninsured asset treated?

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FOI status:

1. The entire loss or destruction of an asset, or loss or destruction of part of an asset, constitutes a disposal of that asset, or part of that asset (section 160N).

2. Where an uninsured asset, or part of an uninsured asset is lost or destroyed, any payment received as compensation by a taxpayer, is taken to be an amount of money received "as a result of or in respect of" the disposal of that asset or part of that asset (section 160ZD). If an uninsured asset was acquired before 20 September 1985, no part of the compensation payment received in relation to that asset would be subject to CGT.

Commissioner of Taxation
21 May 1992

References

ATO references:
NO CGT Cell

Related Rulings/Determinations:

CGT 31

Subject References:
Lost or destroyed assets;
uninsured assets,
compensation payments

Legislative References:
160N;
160ZD