Private ruling: Extension of time to purchase a replacement asset to maintain the small business CGT concession
Date of advice: 12 April 2021
Published: June 2021
Ruling period: Year ended 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 (ITAA 1997) to extend the replacement asset period 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: On XX/month/20XX, you sold a property which you used in your business. You made a capital gain. You elected to apply the small business rollover concession. You engaged with real estate agents and endeavoured to acquire a replacement asset. You were delayed in acquiring a replacement asset due to COVID-19, specifically: • The travel restriction imposed prevented you from travelling to inspect properties and businesses to carry out due diligence. • Unusual and uncertain economic climate. You intend to acquire a replacement asset by DD MM YYYY.

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