Taxation Determination

TD 93/182

Income tax: capital gains: when will a building which is relocated to pre-CGT land be treated as a separate asset under subsection 108-55(2) of the Income Tax Assessment Act 1997?

Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

FOI status:

may be releasedFOI number: I 1216140

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).

[ Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]

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

2. For subsection 108-55(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to apply, the building must have been:

(i): constructed on pre-CGT land (see TD 93/184) &
(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 for the purposes of subsection 108-55(2).

Note:

Any capital improvements on relocation will be treated as an asset separate from the land where the threshold tests in subsections 108-70(2) and (3) are satisfied.

Example 1:

X acquired a building on Block A in 1979. In 1999 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 2002 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
9/9/93

Previously issued as Draft TD 93/D77

References

ATO references:
NO TD/92/0027/PAR (CGTDET 60)

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 93/180
TD 93/181
TD 93/183
TD 93/184

Subject References:
CGT assets
CGT composite assets
CGT separate assets
pre-CGT assets

Legislative References:
ITAA 1997 108-55(2)
ITAA 1997 108-70(2)
ITAA 1997 108-70(3)

TD 93/182 history

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

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