Commonwealth Consolidated Acts Commonwealth Consolidated ActsAll of the partners in a partnership can choose to obtain a roll - over if one of the * CGT events (the trigger event ) specified in this table happens involving the partners and a company in the circumstances set out in sections 122 - 130 to 122 - 140.
Relevant * CGT events | |
Event No. | What the partners do |
A1 | * Dispose of their interests in a * CGT asset of the partnership, or all the assets of a business carried on by the partnership, to the company |
D1 | Create contractual or other rights in the company |
D2 | Grant an option to the company |
D3 | Grant the company a right to income from mining |
F1 | Grant a lease to the company, or renew or extend a lease |
Note 1: The roll - over starts at section 122 - 150.
Note 2: Section 103 - 25 tells you when you have to make the choice.
Example: Michael and Sandra operate a fish shop in partnership. They agree to incorporate the business so they dispose of their interests in all its assets to a company. They are the only shareholders of the company.