Edited version of private advice

Authorisation Number: 1051757376058

Date of advice: 12 October 2020

Ruling

Subject:Small business concessions - replacement asset extension of time

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?

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

Additional information

We have limited our ruling to the question raised in your application being whether an extension of time will be granted. The Commissioner has not considered your edibility for the small business CGT concessions in this ruling. You should ensure that you satisfy the basic conditions and any other relevant conditions.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You will report a capital gain event in your 20XX tax return electing to roll over the capital gain on disposal. You met the basic conditions to apply the small business CGT concessions.

You purchased a replacement asset when the asset became available.

You sold your business asset, which provided you a period of one year before the last CGT event.

You have established a succession strategy for your business, which involved your child purchasing the residual holdings of your asset.

The sale was delayed due to difficult conditions outside of your control, combined with complex succession planning issues.

Relevant legislative provisions

Income Tax Assessment Act 1997 (ITAA 1997) section 104-190