Private ruling: Capital gains tax: replacement asset roll-over relief: compulsory acquisition
Date of advice: 11 April 2019
Published: June 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the replacement asset roll-over provisions in subdivision 124-B of the Income Tax Assessment Act 1997 for compulsory acquisition’s apply to the disposal of the residential unit to Visionary? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner accepts that the residential unit is being compulsory acquired under an Australian law.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are a foreign resident for Australian taxation purposes. You own the residential unit. The residential unit is an investment property. The residential unit is subject to Strata Plan No xxxx. Strata Plan No xxxx resolved to commence the strata renewal process At the end of this process, Company will be given the rights to compulsory acquire the residential unit. Company made a final offer to purchase the residential unit advising that if you did not agree, they would commence the compulsory acquisition process. You will enter into a Contract of Sale with Company. You will purchase a replacement investment property within twelve months after the income year in which the sale occurs.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 124-70 | Income Tax Assessment Act 1997 s ection 124-75 | Income Tax Assessment Act 1997 section 124-85