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COMMONWEALTHAct
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s 112-20

Market value substitution rule

In force
Chapter 3Specialist liability rules
Part 3-1Capital gains and losses: general topics
Division 112Modifications to cost base and reduced cost base
Subdivision 112-AGeneral rules

112-20 Market value substitution rule

In working out the cost base and reduced cost base of a CGT asset:

(a)

that you acquired before 16 August 1989; and

(b)

to which paragraph 112‑20(2)(b) or (c), or item 5 or 6 in the table in subsection 112‑20(3), of the Income Tax Assessment Act 1997 would apply (apart from this section);

disregard subsections 112‑20(2) and (3) of that Act.

Note:

This section preserves the pre‑16 August 1989 position for, among other things, shares or units issued or allotted to you by allowing the market value substitution rule to apply.

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Section 112-20 — Market value substitution rule — Income Tax (Transitional Provisions) Act 1997 (Commonwealth) — Barrister AI