Private ruling: Small business concessions - extension of time - replacement asset
Date of advice: 29 May 2021
Published: August 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 104-190(2) and 104-197(5) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to 30 April 20XX? Answer Yes. Having regard to the particular circumstances of your case and the information provided, the Commissioner has applied the discretion and will extend the replacement asset period to 30 April 20XX.

Relevant facts and circumstances: The Trust disposed of a CGT asset. The Trust utilised the Small Business Rollover under subdivision 152-E of the ITAA 1997 and chose to rollover part of the proceeds. The sale contract stipulated a long settlement date which was subsequently delayed at the buyer's request. The Trust was not in a position to acquire a replacement asset until settlement had finalised due to the capital proceeds not being received, and also due to the uncertainty of settlement taking place during the COVID pandemic. The Trust has been actively searching for an alternatively business premises from which to conduct the business carried on by a connected entity. The COVID pandemic has made searching for and find a suitable replacement asset difficult. The Trust made an offer on a suitable replacement asset but it was not accepted by the vendor.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-E | Income Tax Assessment Act 1997 section 104-190 | Income Tax Assessment Act 1997 section 104-197


This ruling applies for the following periods: