Private ruling: CGT - small business concession - rollover relief
Date of advice: 27 November 2023
Published: 22 January 2024
Ruling period: Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 104-190(2) ofthe Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period? | A1: Yes. Having regard to the particular circumstances of this case, in particular the construction delays that were experienced, the Commissioner has applied the discretion and will extend the replacement asset period. As a result of delays relating to the purchase of the land and construction of the building, the replacement asset was not active by the end of the rollover period. This is an acceptable explanation for the period of extension required. There would be no prejudice to the ATO by allowing the extension. There is no mischief involved. The Commissioner considers it fair and equitable in these circumstances for an extension to be allowed.

Relevant facts and circumstances: You made a capital gain. You elected to apply the capital gains tax (CGT) small business roll-over concession to the capital gain. Your two-year period to acquire a replacement asset has passed. You acquired an asset and intended to construct a building that would be used by a related entity in carrying on their business. Construction delays outside your control have impacted you.

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