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Edited version of private advice

Authorisation Number: 1051691160970

Date of advice: 1 June 2020

Ruling

Subject: Small business concessions - extension to replacement asset period

Question

Will the Commissioner use his discretion to extend the replacement asset period to DD/MM/YYYY, pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 in respect of the Small Business CGT replacement asset rollover relief?

Answer

Yes. Having considered your circumstances and the relevant factors the Commissioner considers it appropriate to grant an extension of the replacement asset period. Further information can be found by searching 'QC 52291' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 2017

Year ended 30 June 2018

Year ended 30 June 2019

Year ended 30 June 2020

Year ended 30 June 2021

The scheme commences on:

1 July 2016

Relevant facts and circumstances

You purchased a number of shares in the Company for $XXX in 20YY

You were the only shareholder and director in the Company.

You sold all your shares in the Company on DD/MM/YYYY for $X,XXX,XXX, and there was a capital gain.

Since then you have looked at purchasing a couple commercial properties.

In a letter to the ATO it was stated:

·        You meet the small business concessions criteria.

·        Your assets before the CGT event were less than $2 million.

·        The shares in the company were used in the business with minimal director loans. The assets were used in business. Therefore, the shares were active assets during the duration of ownership.

·        The additional conditions were met as the taxpayer owned 100% of the issued capital being ordinary shares with full rights to dividends, capital and voting.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-190

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