(1) You can choose to obtain a roll-over (whether or not the transferor and transferee choose to obtain a roll-over, and even if * CGT event J4 applies) if:
(a) you own units or interests in the transferor (your original interests ); and
(b) the ownership of all your units or interests ends under a trust restructure in exchange for * shares in the transferee (your replacement interests ).
Note 1: The roll-over consequences are set out in Subdivision 124-A. The original assets are your units and interests in the transferor. The new assets are your shares in the transferee.
Note 2: The effect of the roll-over may be reversed if the transferor does not cease to exist within 6 months: see section 104-195.
(2) You must make the choice for each of your original interests.
(3) An entity that is a foreign resident cannot choose a roll-over under this section unless the replacement interests the entity * acquires in the transferee are * taxable Australian property just after their acquisition.
(4) If you choose a roll-over, you cannot make a * capital loss from a * CGT event that happens to your original interests during the * trust restructuring period.
Note: The rule in subsection (4) prevents a capital loss arising on your units or interests after the trust assets have been disposed of to the company but before your shares are issued to you.
Exception: trading stock
(5) This section does not apply to your ownership of an original interest ending if:
(a) the interest was an item of your * trading stock and the corresponding replacement interest becomes an item of your trading stock when you * acquire it; or
(b) the interest was not an item of your trading stock but the corresponding replacement interest becomes an item of your trading stock when you acquire it.