Private ruling: CGT - rollover relief
Date of advice: 27 November 2023
Published: 22 January 2024
Ruling period: Year ending 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period? | A1: Yes. Having regard to the particular circumstances of this case, the Commissioner has applied the discretion and will extend the replacement asset period. As a result of unavoidable delays relating to the purchase and construction of the premises from which the trust will conduct its business, not all of the replacement assets were held ready for use by the end of the rollover period. This is an acceptable explanation for the period of extension required. There would be no prejudice to the ATO by allowing the extension. There is no mischief involved. The Commissioner considers it fair and equitable in these circumstances for an extension to be allowed

Relevant facts and circumstances: The trust made a capital gain. The elected to apply the CGT small business roll-over concession to the CGT gain. The two-year period to acquire a replacement asset has passed. Various delays relating to the business premises have prevented the Trust from acquiring replacement assets.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 104-190(2)