Private ruling: Capital gains tax - small business concessions
Date of advice: 22 September 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX | Year ending 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 to xxxx? | A1: Yes. Having regard to your full circumstances, the Commissioner considers it would be fair and equitable for the purposes of section 104-190(2) of the ITAA 1997 to extend the replacement asset period to xxxx and allow the small business roll-over under Subdivision 152-E of the ITAA 1997. Further information on the small business rollover can be found on by searching 'QC52291' on ato.gov.au.


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


Relevant facts: You disposed of an active asset on xxxx. | You applied the small business general capital gains tax (CGT) discount, active asset discount and the retirement exemption to the gain to produce a taxable gain of $xxx. You then applied the replacement asset rollover to this amount. | Due to circumstances outside your control you have been unable to acquire a replacement active asset within the replacement asset period. | You have extensive experience in relevant areas. You have been actively looking to purchase a replacement business over the past 24 months. You have been working together to purchase a business to meet the CGT rollover requirements. | You engaged entity A to assist in search of a business. You had weekly business planning meetings to discuss the market and possible opportunities. You investigated several businesses. You have also consulted various business advisors. | Due to current economic situation occurring with COVID-19 and social restrictions, the required timeframe to purchase a business has been extremely difficult to meet. | You satisfy the basic conditions in Subdivision 152-A of the ITAA 1997.