Private ruling: Capital gains tax - small business concessions
Date of advice: 17 December 2020
Published: February 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 to extend the replacement asset period in respect of the small business capital gains tax (CGT) replacement asset roll-over relief to DD MM YYYY? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time for the asset to qualify as a replacement asset.

Relevant facts and circumstances: You have a primary production business which operated on farmland. You sold the farmland. The farmland was considered an active asset. You have applied the CGT replacement assetrollover as you intend to continue your primary production business in another location. You have located suitable farmland in another location (replacement active asset). You have requested an extension to purchase the replacement active asset, as the vendor will not sell without you first entering a X period lease. You have been unable to locate any other suitable farmland.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190