Private ruling: CGT small business concessions - extension of time for replacement asset
Date of advice: 10 March 2022
Published: May 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner use his discretion to extend the replacement asset period to XX XX 20XX pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 in respect of the Small Business CGT replacement asset rollover relief? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner will exercise his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of time until XX XX 20XX

Relevant facts and circumstances: Taxpayer is a trust which operated a business on behalf of another entity until they purchased the business sometime later. The director of the trust, (the Director) sustained an injury in some years prior which impacts their ability to perform physical activities on a regular basis. The injury has resulted in on-going medical treatment, procedures and an operation for the injuries as evidenced by the medical documents provided. As the injuries impacted the Directors ability to continue with the physical work the Trustees have been looking to replace the asset with a more manageable business activity. The business continued to operate until it was sold. The search for a replacement asset which entails less physical stress on the Director was undertaken while undergoing medical treatment and the two year period lapsed. The Trust has since entered into a contract to purchase a replacement asset. Assumptions The entity meets the requirements for the CGT small business concessions as outlined in Income Tax Assessment Act 1997 subsection 152A

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