A capital gain or capital loss is the difference between the cost of an asset and the profit or loss made when it is disposed of. In certain circumstances, a capital gain from a CGT event can be deferred, or ‘rolled over’, until another CGT event happens which involves an asset in the following events:
Marriage or relationship breakdown
If an asset, or a share of an asset, is transferred from one spouse to another upon their marriage or relationship breaking down, any CGT is usually deferred until another CGT event takes place i.e. one spouse sells the asset to someone else.
Loss, destruction or compulsory acquisition
Individuals can defer a capital gain when their CGT asset is lost, destroyed or compulsorily acquired.
Those who dispose of their land to an entity who holds a compulsory mining lease over it that would significantly affect the use of the land can defer a capital gain.
Scrip for scrip
Individuals can defer a capital gain if they dispose of their shares in a company or interest in a trust as a result of a takeover.
Individuals can defer a capital gain or capital loss if a CGT event happens to their shares in a company or their interest in a trust as a result of a demerger.