(1) CGT event E1 happens if you create a trust over a * CGT asset by declaration or settlement.
Note: A change in the trustee of a trust does not constitute a change in the entity that is the trustee of the trust (see subsection 960 - 100(2)). This means that CGT event E1 will not happen merely because of a change in the trustee.
(2) The time of the event is when the trust over the asset is created.
(3) You make a capital gain if the * capital proceeds from the creation are more than the asset's * cost base. You make a capital loss if those capital proceeds are less than the asset's * reduced cost base.
(4) If you are the trustee of the trust and no beneficiary is absolutely entitled to the asset as against you (disregarding any legal disability), the first element of the asset's * cost base and * reduced cost base in your hands is its * market value when the trust is created.
(5) CGT event E1 does not happen if you are the sole beneficiary of the trust and:
(a) you are absolutely entitled to the asset as against the trustee (disregarding any legal disability); and
(b) the trust is not a unit trust.
(6) A * capital gain or * capital loss you make is disregarded
if you * acquired the asset before 20 September 1985.