Private ruling: Small business capital gains tax concessions - replacement asset period
Date of advice: 19 January 2021
Published: March 2021
Ruling period: Year ended 30 June 20AA | Year ended 30 June 20BB | Year ended 30 June 20CC
Date scheme commenced: DDMMYY

Ruling: Q1: Will the Commissioner exercise his direction under subsection 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period to 30 June 20CC? | A1: Yes. Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period to 30 June 20CC. Further information can be found by searching 'QC 52291' on ato.gov.au

Relevant facts and circumstances: You sold an active asset on DDMMYY and elected to apply the CGT Small Business Rollover replacement asset provisions under subdivision 152-E of the Income Tax Assessment Act 1997 , as all conditions for that concession were met, subject to purchasing a replacement asset. You have been actively looking for a replacement asset during the 2 year period allowed for the purchase of the replacement asset. During this time, you have attended auctions, submitted Expressions of Interest for the purchase of such assets and have inspected many such assets for purchase. Due to COVID travel restrictions, the ability to view such assets interstate and, to an extent, within your home state has been limited. You are extremely interested in an asset that has recently come on the market. The auction date was set for MMYY (within 2 year replacement period) but has now been postponed a month (outside 2 year replacement period). You believe you have the financial capacity to purchase the asset. The asset cannot be purchased pre-auction as it is an asset held within a deceased estate and can only be sold by auction in accordance with the terms of the deceased's will. You have provided evidence of visiting and making offers on a number of such assets over the last X months.

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