(1) One of these requirements must be satisfied (for each partner) if:
(a) the partners * dispose of their interests in a * CGT asset; and
(b) the company undertakes to discharge one or more liabilities in respect of the interests in the asset.
(The * market value, or the * cost base, of an interest is worked out at the time of the disposal.)
What amount the liabilities cannot exceed | ||
Item | In this situation: | the liabilities cannot exceed: |
1 | A partner * acquired the interest on or after 20 September 1985 | The * cost base of the interest |
2 | A partner * acquired the interest before 20 September 1985 | The * market value of the interest |
Note: There are rules for working out what are the liabilities in respect of an interest in an asset: see section 122 - 145.
Disposal of all the assets of a business
(2) One of these requirements must be satisfied (for each partner) if:
(a) the partners * dispose of their interests in all the assets of a * business; and
(b) the company undertakes to discharge one or more liabilities in respect of the interests in the assets.
(The * market value, or the * cost base, of an interest is worked out at the time of the disposal.)
What amount the liabilities cannot exceed | ||
Item | In this situation: | the liabilities cannot exceed: |
1 | A partner * acquired all the interests on or after 20 September 1985 | The sum of the * market values of the partner's interests in * precluded assets and the * cost bases of the partner's interests in other assets |
2 | A partner * acquired all the interests before 20 September 1985 | The sum of the * market values of the interests |
3 | A partner * acquired at least one interest on or after 20 September 1985 and at least one before that day | For liabilities in respect of interests * acquired on or after that day--the sum of the * market values of the partner's interests in * precluded assets and the * cost bases of the partner's interests in other assets For liabilities in respect of interests * acquired before that day--the sum of the market values of those interests |