Private ruling: CGT - replacement asset rollover relief - extension of time
Date of advice: 4 August 2023
Published: 18 September 2023
Ruling period: Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

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? | A1: Yes. The Commissioner will provide an extension the time until 31 December 2023 for the Trust to acquire a replacement asset. Having considered the reasons for the delays in acquiring the replacement, the Commissioner will provide further time pursuant to subsection 104-190(2) of the ITAA 1997 for the Trust to acquire a replacement asset.

Relevant facts and circumstances: You sold your asset in the financial year ending 30 June 2020, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997. Restrictions related to the COVID-19 pandemic in addition to other specific issues related to your proposed business activity hindered your plans to acquire a replacement asset within the replacement period.

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