Private ruling: An extension of time, to replace an active asset for the small business capital gains tax concession
Date of advice: 29 January 2021
Published: March 2021
Ruling period: Year ending DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to purchase a replacement asset to DD MM YYYY? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYY for the asset to purchase a replacement asset.

Relevant facts and circumstances: You commenced a small business. You decided to move interstate. You sold the small business and disposed of all ownership interest. You made a capital gain. You moved interstate. You were in the process of purchasing a replacement asset however due to COVID-19 had to withdraw. You are now in the process of purchasing a replacement asset.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190