Private ruling: CGT - small business concessions
Date of advice: 28 June 2022
Published: October 2022
Ruling period: year ended 30 June 20XX | year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period back to XX/XX/20XX to allow you to choose Property 2, acquired more than one year before the disposal of Property 1, as the replacement asset? | A1: Yes. Having regard to your full circumstances and the acceptable explanation for the period of extension you have requested, the Commissioner considers the extension would be fair and equitable. Further information on the small business rollover can be found on by searching 'QC 52291' on ato.gov.au.

Relevant facts and circumstances: You acquired Property 2. Less than two weeks later, you entered a contract to sell Property 1 to ABC Pty Ltd. Approximately one year later, the sale of Property 1 to ABC Pty Ltd fell through. Another purchaser XYZ Pty made a formal offer for Property 1 but the offer was withdrawn before acceptance. Later, ABC Pty was again in a position to proceed with the original contract. The contract was then signed to sell Property 1 to ABC Pty Ltd. A capital gain of was made on the sale Property 1. You would like to apply a small business roll-over under Subdivision 152-E of the ITAA 1997 to the capital gain, however you acquired the replacement asset (Property 2) more than 12 months prior to the CGT event for Property 1. At the time that you purchased Property 2, Property 1 was already listed for sale and you were confident that its sale would be imminent. It was your intention at the time of purchasing Property 2, that it would be the replacement asset for Property 1.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)