Private ruling: Capital gains tax – small business concession – extension of time
Date of advice: 8 August 2018
Published: October 2018
Ruling period: Financial year ending 30 June 20XX
Date scheme commenced: 11 September 20XX

Ruling: Q1: Will the Commissioner exercise his discretion to extend the replacement asset period in respect of the small business capital gains tax (CGT) replacement asset roll-over relief? | A1: Yes Having considered the relevant factors, and the particular circumstances of your case, the Commissioner will exercise his discretion to extend the replacement asset period.

Relevant facts and circumstances: You signed a contract for the sale of your business. You elected to utilise the replacement asset rollover for the balance of the capital gain. The sale was a forced sale by the franchisor due to a legal matter. Due to the uncertainty around the outcome of the legal proceedings, in the period of time following the business sale until the legal matter was concluded you were unable to commence the process of acquiring a replacement asset which left a limited time to find a replacement prior to the expiry of the two year period. Despite the genuine efforts at acquiring a suitable replacement asset, the two year period expired without a replacement being found. You later signed a contract for the purchase of a business, which was settled a short time after the end of the replacement asset period.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A | Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 Subsection 104-185(1) | Income Tax Assessment Act 1997 Subsection 104-190(2) | Income Tax Assessment Act 1997 Section 104-197 | Income Tax Assessment Act 1997 Section 104-198 Further issues for you to consider | This ruling has not considered your eligibility for the small business rollover concession. You should ensure that you satisfy the basic conditions and the other conditions relevant for the concession. More information can be found at C apital gains tax concessions for small business , which is available on our website www.ato.gov.au .


Subject: Capital gains tax – small business concession – extension of time: This ruling applies to the beneficiaries of the trust and to the trustee and to any future trustees, for as long as the ruling remains current.