INCOME TAX ASSESSMENT ACT 1997 - SECT 124.1225 Disposals of interests under interest realignment arrangements

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.1225

  (1)   There is a roll - over if:

  (a)   * CGT event A1 happens because you * dispose of one or more assets each of which:

  (i)   is an interest (an original interest ) in a * mining, quarrying or prospecting right; and

  (ii)   is an interest that you started to * hold before 1   July 2001; and

  (b)   the disposal occurs under an * interest realignment arrangement.

  (2)   The first element of the * cost base and * reduced cost base of an interest (a new interest ) in a * mining, quarrying or prospecting right that you acquire under the * interest realignment arrangement includes any amount you paid to acquire the new interest.

Note 1:   The rest of the first element is worked out under Subdivision   124 - A.

Note 2:   Under subsections   124 - 10(2) and 124 - 15(2), a capital gain or capital loss you make from the original interest is disregarded.

  (3)   The amount can include giving property: see section   103 - 5. However, it does not include a * mining, quarrying or prospecting right that you dispose of under the * interest realignment arrangement.