Private ruling: CGT - replacement asset rollover relief
Date of advice: 24 May 2023
Published: 10 July 2023
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 in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset by 12 months? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period to 30 June 20XX.

Relevant facts and circumstances: You had a capital gains tax (CGT) event during the 20XX financial year. The CGT event resulted in a capital gain which was rolled over under the small business roll-over. Restrictions related to the COVID-19 pandemic and contractual geographical restraints placed on you under the sale of the original CGT asset, have hindered your plans to acquire a replacement asset. You explored the acquisition of a replacement asset, a deposit was paid for the acquisition of shares, however the purchase did not proceed due to a difference of opinion, and the deposit was forfeited. You are investigating new business opportunities and negotiations are in process to acquire shares in another business however it is taking longer than a two-year period to secure a replacement asset.

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