This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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If you receive money because a CGT event happens, you can choose roll-over only if:
- you incur expenditure in acquiring another CGT asset or
- part of the original asset is lost or destroyed and you incur expenditure of a capital nature in repairing or restoring it.
You must incur at least some of the expenditure:
- no earlier than one year before the event happens or
- within one year after the end of the income year in which the event happens.
This period may be extended in special circumstances.
Trish paid for the repair of an asset for which she was compensated after part of it was destroyed on 1 September 2000. Trish's expenditure qualifies for the roll-over concession if it was incurred any time during the period 1 September 1999 to 30 June 2002.
The replacement asset need not be identical to the one it is replacing. However, for roll-over to apply, you must use it in the same business or for the same (or a similar) purpose as the one for which you used the original asset. Also, your replacement asset cannot become an item of trading stock nor can it be a depreciating asset.
Roll-over does not apply
Denise receives money when her manufacturing business premises are destroyed. She buys a rental property with this money.
Denise cannot access the roll-over concession because she does not use the rental property for the same or similar purpose as her old business premises.
Last modified: 06 Oct 2009QC 27417