Private ruling: CGT extension of the replacement asset period
Date of advice: 29 May 2021
Published: August 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 (ITAA 1997) to extend the replacement asset period to DD MM YYYY? | A1: Yes. Having considered the relevant facts, the Commissioner will apply his discretion undersubsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYYto purchase a replacement asset.

Relevant facts and circumstances: You and your spouse sold a CGT Asset. Under section 152-10 of the ITAA 1997, you satisfy the basic conditions for CGT Relief and have elected to apply the Small Business Roll-Over Concession in Subdivision 152-E of the ITAA 1997. Within the replacement asset period, you and your spouse identified an eligible replacement asset which you intended to acquire. You engaged a solicitor and commenced the acquisition process. Your spouse passed away unexpectantly. The identified replacement asset which you commenced acquiring, is indirectly part of your spouse's (deceased) estate and you were unable to proceed with the acquisition as probate of your spouse's will had not been granted and the estate had not been administered. You applied for a Private Ruling in relation to the sale of the CGT Asset, requesting an extension of the replacement asset period to apply the Small Business Roll-Over due to the death of your spouse. You were issued a Notice of Decision (Authorisation Number: 123) granting you an extension of the replacement asset period to apply the Small Business Roll-Over Concession until DD MM YYYY. Since being issued a Notice of Decision, the circumstances of your spouse's estate have not changed; probate of the will has not been granted and the estate has not been administered.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-190(2) | Income Tax Assessment Act 1997 section 104-197 | Income Tax Assessment Act 1997 subdivision 152-E