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Edited version of private advice

Authorisation Number: 1051824979676

Date of advice: 12 April 2021

Ruling

Subject: Extension of time to purchase a replacement asset to maintain the small business CGT concession

Question

Will the Commissioner exercise his discretion under section 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to DD MM YYYY?

Answer

Yes.Having considered the relevant facts, the Commissioner will apply his discretion under subsection 104-190(2) of the ITAA 1997 and allow an extension of the time to DD MM YYYY for the asset to purchase a replacement asset.

This ruling applies for the following periods:

Year ended DD MM YYYY

The scheme commences on:

DD MM YYYY

Relevant facts and circumstances

On XX/month/20XX, you sold a property which you used in your business.

You made a capital gain.

You elected to apply the small business rollover concession.

You engaged with real estate agents and endeavoured to acquire a replacement asset.

You were delayed in acquiring a replacement asset due to COVID-19, specifically:

•         The travel restriction imposed prevented you from travelling to inspect properties and businesses to carry out due diligence.

•         Unusual and uncertain economic climate.

You intend to acquire a replacement asset by DD MM YYYY.

Relevant legislative provisions

Income Tax Assessment Act 1997 - Section 104-190

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