Income Tax (Transitional Provisions) Act 1997
View history note
Hide history noteA capital gain or capital loss the originating company makes from the CGT event is disregarded.
126-160(2)
The first element of the cost base of the original asset or the replacement asset for the recipient company is the cost base of the original asset for the originating company just before the time of the CGT event.
126-160(3)
The first element of the reduced cost base of the original asset or the replacement asset for the recipient company is worked out similarly.
126-160(4)
For a case where the originating company creates a CGT asset in the recipient company, the first element of the asset ' s cost base (in the hands of the recipient company) is the amount applicable under this table. The first element of its reduced cost base is worked out similarly.
| Creating a CGT asset | |
| CGT event number | Applicable amount |
| D1 | the incidental costs the originating company incurred that relate to the CGT event |
| D2 | the expenditure the originating company incurred to grant the option |
| D3 | the expenditure the originating company incurred to grant the right |
| F1 | the expenditure the originating company incurred on the grant, renewal or extension of the lease |
The expenditure can include giving property: see section 103-5 of the Income Tax Assessment Act 1997 .
126-160(5)
If the originating company acquired the original asset before 20 September 1985, the recipient company is taken to have acquired the original asset or the replacement asset before that day.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
