Private ruling: Capital gains tax – Small business concession – extension of time
Date of advice: 27 July 2018
Published: September 2018
Ruling period: Year ending 30 June 20XX. | Year ending 30 June 20XX.
Date scheme commenced: 26 April 20XX.

Ruling: Q1: Will the Commissioner exercise his discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the small business capital gains tax (CGT) replacement asset roll-over relief? | A1: Yes. Having considered the relevant factors above, and the particular circumstances of your case, the Commissioner will exercise his discretion to extend the replacement asset period.

Relevant facts and circumstances: You recently sold farm land. You elected to utilise the small business rollover with the intention of acquiring a replacement asset. You are also involved in a dispute in relation to a relative’s estate, of which you are a beneficiary. This has affected your ability to remain competitive when seeking a replacement asset. Your relative’s estate is made up of substantial cash, shares and farm land. You expected that your relative’s estate would have been administered within a reasonable period of time, and you would have been able to acquire a replacement asset within the two year period. You expect the dispute to be settled within a number of months. Prior to the end of the replacement asset period, you have made genuine attempts at acquiring a suitable replacement asset, including making tenders for suitable replacement properties. Your agent has been actively looking for rural properties, acted as a nominated bidder and provided advice on a number of offers on your behalf.

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