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Edited version of private advice
Authorisation Number: 1052245152996
Date of advice: 24 April 2024
Ruling
Subject: CGT - compulsory acquisition roll-over
Question
Will the Trustee of Trust A be eligible to choose to obtain the roll-over under sections 124-70 and 124-75 of the Income Tax Assessment Act 1997 (ITAA 1997) as a result of the compulsory acquisition of land owned by the Trustee of Trust A by a government agency if the Trustee of Trust A incurs at least some expenditure by 30 June 2024 in acquiring replacement land?
Answer
Yes.
This ruling applies for the following period:
1 July 2023 to 30 June 2024
The scheme commenced:
During the period ended 30 June 2023
Relevant facts and circumstances
The Trustee of Trust A owns various assets.
A parcel of land owned by the Trustee of Trust A was compulsorily acquired by a government agency for money.
The Trustee of Trust A is proposing to acquire replacement land no later than one year after the end of the income year in which the compulsory acquisition happened.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 124-B
Income Tax Assessment Act 1997 section 124-70
Income Tax Assessment Act 1997 section 124-75
Reasons for decision
The specific circumstances of Trust A and the proposed acquisition of replacement land by the Trustee of Trust A satisfy the relevant requirements of sections 124-70 and 124-75 of the ITAA 1997.
Therefore, the Trustee of Trust A will be eligible to choose to obtain the roll-over under sections 124-70 and 124-75 of the ITAA 1997.