Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 315.260

  (1)   This section sets out what happens if a * CGT asset:

  (a)   is a demutualisation asset; and

  (b)   forms part of the estate of a participating policy holder mentioned in subsection   315 - 90(1) who has died, but was not owned by the policy holder just before dying; and

  (c)   * passes to a beneficiary in the policy holder's estate because the asset is transferred to the beneficiary by the policy holder's * legal personal representative.

Note:   Division   128 deals with the effect of death in relation to CGT assets a person owns just before dying.

  (2)   Disregard a * capital gain or * capital loss the * legal personal representative makes if the asset * passes to a beneficiary in the policy holder's estate.

Consequence for beneficiary

  (3)   The * cost base and * reduced cost base of the asset in the hands of the * legal personal representative just before the asset * passes to the beneficiary becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary.

  (4)   The beneficiary is taken to have * acquired the asset when the * legal personal representative acquired it.

Table of sections

315 - 310   General taxation consequences of issue of demutualisation assets etc.