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Taxation Determination

TD 93/183

Income tax: capital gains: what are the CGT implications of removing a post-CGT building from post-CGT land and relocating it on pre-CGT land?

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FOI status:

may be releasedFOI number: I 1216156

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. The removal of the building is not a disposal of an asset and on removal, the building and land are split into separate assets (see TD 93/180).

2. The cost base of the post-CGT building and land is apportioned under subsection 160ZH(12) of the Income Tax Assessment Act 1936.

3. On relocation of the building to the pre-CGT land, the building continues to be a separate post-CGT asset (see TD 93/182).

4. Any capital improvements made to the pre-CGT land will be treated as an asset separate from the land where the threshold tests in subsection 160P(6) are satisfied.

5. The pre-CGT land remains a pre-CGT asset. Upon disposal of the land and building, a capital gain or capital loss may only arise in respect of the building (and capital improvements if they are treated as a separate asset).

Commissioner of Taxation
9/9/93

Previously issued as Draft TD 93/D78

References

ATO references:
NO TD/92/0029/PAR (CGTDET 61)

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 6
TD 93/180
TD 93/181
TD 93/182
TD 93/184

Subject References:
Building relocation
capital improvements
composite asset
cost base
disposal of an asset
separate asset

Legislative References:
ITAA 160P(6)
ITAA 160ZH(12)

TD 93/183 history
  Date: Version: Change:
  9 September 1993 Original ruling  
You are here 29 November 2006 Original ruling + note Repeal provision note
  21 April 2010 Consolidated ruling Addendum

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