Draft Taxation Determination

TD 93/D77

Income tax: capital gains: when will a building which is relocated to pre-CGT land be treated as a separate asset under subsection 160P(2)?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 93/182.

FOI status:

Preamble

1. It will only be when the building was acquired post-CGT.

2. For subsection 160P(2) of the Income Tax Assessment Act 1936 to apply, the building must have been:

(i)

constructed on pre-CGT land (see TD 93/D79); and

(ii)

acquired post-CGT.

3. Therefore, unless a building was acquired post-CGT, it would not be an asset separate from the land on which it stands.

Example 1

X acquired a building on Block A in 1979. In 1989 X relocated the building from Block A to Block B which X acquired in 1984. The building is not a separate asset from Block B and retains its pre-CGT status.

Example 2

Y acquired a building on Block C in 1988. In 1992 Y relocated the building from Block C to Block D which Y acquired in 1983. The building is treated as an asset separate to Block D and retains its post-CGT status.

Commissioner of Taxation
1 April 1993

References

BO TD/92/0027/PAR (CGTDET 60)

Related Rulings/Determinations:

TD 93/D75
TD 93/D76
TD 93/D78
TD 93/D79

Subject References:
Building relocated to pre-CGT land
capital improvement
composite asset
separate asset

Legislative References:
ITAA 160P(6)
ITAA 160P(2)