Private ruling: Capital gains tax
Published: May 2012
Ruling period: Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014
Date scheme commenced: 1 July 2010

Ruling: Q1: Will the Commissioner, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997), extend the time limit set out in paragraph 104-185(1)(a) of the ITAA 1997 for the replacement asset to be acquired? | A1: Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a partner in a partnership. The partner is your spouse. The partnership made a capital gain from the sale of a shop in 2010. The capital gain was deferred using the small business rollover concession. You intended to purchase a new business prior to 2012. Your spouse was diagnosed with a medical condition in April 2011. Your spouse has undergone surgery and treatment for the condition. You and your spouse have been actively looking for a new business venture to purchase. Your spouse's medical condition has meant you have been unable to persist with the necessary negotiations to purchase a new business. You have requested an extension to acquire a new business until 31 May 2014.


Reasons for decision: Summary: According to the Advance guide to capital gains tax concessions for small business 2010-11 , the small business rollover concession allows an entity to defer a capital gain made from a CGT event if the entity acquires a replacement asset and one or more conditions are satisfied. One of these conditions requires the entity to acquire a replacement asset within a period starting one year before, and ending two years after the date of disposal of the original asset. However, in appropriate circumstances, the Commissioner may extend this period. The abovementioned guide also provides the relevant considerations applied by the Commissioner to extend the two year period. Having regards to your full circumstances and the above principles, the Commissioner will allow an extension of time. Please note it is unlikely that any further extensions will be allowed. Additional information 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 is available in the publication Advanced guide to capital gains tax concessions for small business 2010-11 (NAT 3359), which is available on our website www.ato.gov.au.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.