Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) CGT event J5 happens if you choose a small business roll - over under Subdivision 152 - E for a * CGT event that happens in relation to a * CGT asset in an income year and, by the end of the * replacement asset period:
(a) you have not * acquired a replacement asset (the replacement asset ), and have not incurred * fourth element expenditure in relation to a CGT asset (also the replacement asset ); or
(b) the replacement asset does not satisfy the conditions set out in subsection (2).
Note: You do not have to satisfy the basic conditions in Subdivision 152 - A for the gain in relation to CGT event J5 (see subsection 152 - 305(4)).
(2) The conditions are:
(a) the replacement asset must be your * active asset; and
(b) if the replacement asset is a * share in a company or an interest in a trust:
(i) you, or an entity * connected with you, must be a * CGT concession stakeholder in the company or trust; or
(ii) CGT concession stakeholders in the company or trust must have a * small business participation percentage in you of at least 90%.
Example: Joseph owns 50% of the shares in Company A and Company B. He is therefore a CGT concession stakeholder in the companies: see section 152 - 60. The companies are connected with Joseph (see section 328 - 125) because he controls both of them.
Company A owns land which it leases to Joseph for use in a business. It sells the land at a profit and buys shares in Company B.
Subsection (2) is satisfied for the shares because Joseph is connected with Company A and is a CGT concession stakeholder in Company B.
(3) The time of the event is at the end of the * replacement asset period.
(4) You make a capital gain equal to the amount of the * capital gain that you disregarded under Subdivision 152 - E.
(5) The * replacement asset period may be modified or extended as mentioned in section 104 - 190.