(1) For the purposes of this Part and Part 3-3 (about capital gains and losses) and Subdivision 328-C (What is a small business entity), the vesting of the individual's * CGT assets in the trustee under the Bankruptcy Act 1966 or under a similar foreign law is ignored.
(2) This Part, Part 3-3 and Subdivision 328-C apply to an act done in relation to a * CGT asset of an individual in these circumstances as if the act had been done by the individual (instead of by the trustee etc.):
(a) as a result of the bankruptcy of the individual by the Official Trustee in Bankruptcy or a registered trustee, or the holder of a similar office under a * foreign law;
(b) by a trustee under a personal insolvency agreement made under Part X of the Bankruptcy Act 1966 , or under a similar instrument under a foreign law;
(c) by a trustee as a result of an arrangement with creditors under that Act or a foreign law.
Example: A CGT asset of an individual vests in a trustee because of the bankruptcy of the individual. No CGT event happens as a result of the vesting.
The trustee later sells the CGT asset. Any capital gain or loss is made by the individual, not the trustee.