Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 116 - Capital proceeds  

General rules  

SECTION 116-20   General rules about capital proceeds  

116-20(1)    
The capital proceeds from a *CGT event are the total of:

(a) the money you have received, or are entitled to receive, in respect of the event happening; and

(b) the *market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).

Note 1:

The timing rules for each event are in Division 104 .

Note 2:

In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103-10 .

Note 3:

If you dispose of shares in a buy-back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936 .

116-20(2)    

This table sets out what the capital proceeds from *CGT events F1, F2, H2 and K9 are:

General rules about capital proceeds
Event number	Description of event:	The capital proceeds are:
F1	Granting, renewing or extending a lease	Any premium paid or payable to you for the grant, renewal or extension
.
F2	Granting, renewing or extending a long-term lease	The greatest of:
		(a)	the *market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and
		(b)	what would have been that market value if you had not granted, renewed or extended the lease; and
		(c)	any premium paid or payable to you for the grant, renewal or extension
.
H2	Receipt for event relating to a CGT asset	The money or other consideration you received, or are entitled to receive, because of the act, transaction or event
.
K9	Entitlement to receive payment of a *carried interest	The amount of the payment, to the extent that it is a payment of the *carried interest

116-20(3)    

In working out the *market value of the property the subject of the grant, renewal or extension of a long-term lease:

(a) include the market value of any building, part of a building, structure or improvement that is treated as a separate *CGT asset from the property; and

(b) disregard any *depreciating assets for whose decline in value the lessor has deducted or can deduct an amount under this Act.

Note:

Subdivision 108-D sets out when a building, structure or improvement is treated as a separate CGT asset.

116-20(4)    

In working out the amount of any premium paid or payable to the lessor for the grant, renewal or extension of a long-term lease, disregard any part of it that is attributable to a *depreciating asset of that kind.

The payment of any premium can include giving property: see section 103-5 .

116-20(5)    

In working out the proceeds of a *CGT event that is a *supply, disregard the amount of your *net GST (if any) on the supply.