Old settlements that end will be discussed by the Commissioner. He says the trust estate loses its carry forward losses. Second, if a new settlement arises then the Commissioner says CGT event E1 applies. Section 104-55 of the 1997 Act relevantly provides:(1) CGT event E1 happens if you create a trust over a *CGT asset by declaration or settlement. (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.
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