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Edited version of private advice
Authorisation Number: 1051857805389
Date of advice: 26 June 2021
Ruling
Subject: Requesting an extension of the replacement asset period to maintain the small business roll-over 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 XX June 20XX?
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 XX June 20XX to acquire a replacement asset that satisfies the conditions.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
XX June 20XX
Relevant facts and circumstances
You owned a small business.
You sold the small business.
Under Division 152 of the ITAA 1997, you satisfy the basic conditions for Capital Gains Tax (CGT) relief and consequently intend to apply the relevant small business concessions including the small business roll-over concession.
You purchased a commercial property with the intention to start a new business using the premises and understood that there were significant repairs require prior to communing business.
Due to the social and economic impact of COVID-19, the required repairs have been delayed.
You are in the process of completing the required repairs.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-190