(1) This section sets out what happens if:
(a) a * CGT asset (the original asset ) is split into 2 or more assets (the new assets ); or
(b) a * CGT asset (also the original asset ) changes in whole or in part into an asset (also the new asset ) of a different nature;
and you are the beneficial owner of the original asset and each new asset.
Example: You subdivide a block of land into 3 separate blocks. Each of those blocks is a new asset .
(2) The splitting or change is not a * CGT event.
(3) You work out the * cost base and * reduced cost base of each new asset as follows:
Method statement
Step 1. Work out each element of the * cost base and * reduced cost base of the original asset at the time of the event referred to in subsection (1).
Step 2. Apportion in a reasonable way each element to each new asset. The result is each corresponding element of the new asset's * cost base and * reduced cost base.
(4) If 2 or more * CGT assets (the original assets ) are merged into a single asset (the new asset ) and you are the beneficial owner of the original assets and the new asset:
(a) the merger is not a * CGT event; and
(b) each element of the * cost base and * reduced cost base of
the new asset (at the time of the merging) is the sum of the corresponding
elements of each original asset.