Private ruling: Capital gains tax and the rollover provisions
Published: March 2015
Ruling period: Year ending 30 June 2015 | Year ending 30 June 2016
Date scheme commenced: 1 July 2014

Ruling: Q1: Can you treat more than one asset as replacement assets for an original capital gains tax (CGT) asset for the purposes of Subdivision 124-B of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes


Relevant legislative provisions: Income Tax Assessment Act - Subdivision 124-B | Income Tax Assessment Act - section 124-75 Other issues for you to consider

Reasons for decision: Summary: Subdivision 124-B of the ITAA 1997 contains the rollover provisions in relation to assets compulsorily acquired, lost or destroyed. Taxation Determination TD 2000/41 considers the requirements to be met under subsection 124-75(4) of the ITAA 1997 contained in Subdivision 124-B. TD 2000/41 states, at paragraph 13: 13. There is no restriction on the number of CGT assets which may be treated as replacement assets for an original CGT asset in the replacement-asset roll-over provisions in Subdivision 124-B provided that they each satisfy the relevant requirements of that Subdivision. Therefore, providing each asset satisfies the requirements set out in Subdivision 124-B, there is no restriction on the number of replacement assets acquired.

Relevant facts: You held a property that was compulsorily acquired within the meaning set out in section 124-70 of the ITAA 1997. | You are looking to obtain a replacement asset. However, due to limitations in the real estate market, the trust may need to obtain two or more replacement assets.