Effects of roll‑over
126-160 Effects of roll‑over
A capital gain or capital loss the originating company makes from the CGT event is disregarded.
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.
The first element of the reduced cost base of the original asset or the replacement asset for the recipient company is worked out similarly.
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.
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.
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