Recorded Webinar: Scope and Limits of Division 128: The CGT Rollover on Death

The Division 128 CGT rollover, which provides that any capital gain or loss from a CGT asset held by a deceased immediately before death, seems simple on its face. However, it’s important for advisers to understand just how far it extends – and what it doesn’t apply to. This session walks through the application of Division 128 to the following situations:

• Asset passing to legal personal representative:

  • what happens when the LPR transfers the asset to a beneficiary?

  • what happens if the LPR sells the asset?

  • asset passing to a testamentary trust – ATO’s administrative practice PS LA 2003/12

• Asset passing from LPR to beneficiary:

  • effect of Division 128 on CGT asset in beneficiary’s hands

  • beneficiaries not entitled to rollover – exempt entities, complying superannuation funds and foreign entities

  • when does the asset pass?

  • assets bequeathed to beneficiaries as joint owners which are appropriated by individual beneficiaries by agreement?

• What assets aren’t covered by Division 128?