Commonwealth Consolidated Acts Commonwealth Consolidated ActsIf you are an individual or a trustee, you can choose to obtain a roll - over if one of the * CGT events (the trigger event ) specified in this table happens involving you and a company in the circumstances set out in sections 122 - 20 to 122 - 35.
Relevant * CGT events | |
Event No. | What you do |
A1 | * Dispose of a CGT asset, or all the assets of a business, 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 - 40.
Note 2: Section 103 - 25 tells you when you have to make the choice.
Note 3: A roll - over may also be available under Subdivision 328 - G (Restructures of small businesses).
Example: Gavin runs a plumbing business. He wants to incorporate it so he disposes of all its assets to a company. He becomes the sole shareholder of the company.