Income Tax Assessment Act 1997
View history note
Hide history noteCGT event E3 happens if:
(a) a trust (that is not a unit trust) over a *CGT asset is converted to a unit trust; and
(b) just before the conversion, a beneficiary under the trust was absolutely entitled to the asset as against the trustee (disregarding any legal disability the beneficiary is under).
104-65(2)
The time of the event is when the trust is converted.
104-65(3)
The beneficiary makes a capital gain if the *market value of the asset (when the trust is converted) is more than the asset's *cost base. The beneficiary makes a capital loss if that market value is less than the asset's *reduced cost base.
Exception
104-65(4)
A *capital gain or *capital loss the beneficiary makes is disregarded if it *acquired the asset before 20 September 1985.
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