Private ruling: CGT small business concessions
Date of advice: 12 January 2023
Published: 27 February 2023
Ruling period: 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? | A1: Yes, taking into consideration your relevant circumstances, including your intention to acquire a replacement asset and the legal complications delaying the acquisition, the Commissioner will allow an extension of time.

Relevant facts and circumstances: This private ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are different from these facts, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You made a capital gain from the sale of a property. You chose to apply a small business roll-over under Subdivision 152-E of the ITAA 1997 to the capital gain, intending to acquire a replacement asset. A draft contract for another property was prepared within the replacement asset period. The seller was not legally able to enter into a contract until certain structural improvements required to satisfy third party statutory body requirements were made to the property. These were delayed due to the impacts of COVID-19 and legal complications. The contract was signed 6 months after the end of the replacement asset period.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2) | Income Tax Assessment Act 1997 Subdivision 152-E