Income Tax Assessment Act 1997
This section applies in relation to a *CGT event if:
(a) the CGT event happens in relation to an asset held by the trustee of a lost policy holders trust on behalf of a lost policy holder; and
(b) the CGT event happens because the lost policy holder (or, if the lost policy holder has died, the *legal personal representative of the lost policy holder or a beneficiary in the estate of the lost policy holder) either:
(i) is transferred the asset by the trustee; or
(ii) becomes absolutely entitled to the asset.
Note:
The asset may be a demutualisation asset, or some other asset.
Consequence for trustee
315-150(2)
Disregard a *capital gain or *capital loss the trustee makes from the *CGT event.
Consequence for lost policy holder
315-150(3)
The *cost base of the asset in the hands of the trustee of the lost policy holders trust just before the *CGT event becomes the first element of the cost base and *reduced cost base of the asset in the hands of the lost policy holder, *legal personal representative or beneficiary.
315-150(4)
The lost policy holder, *legal personal representative or beneficiary is taken to have *acquired the asset when the trustee of the lost policy holders trust acquired it.
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