EV 1051992928636currentnon-binding advice

CGT replacement asset rollover relief - extension of time

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Will the Commissioner exercise the discretion to extend the replacement asset period pursuant to subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of the small business roll-over under Subdivision 152-E of the ITAA 1997?

2

Yes. Having considered your circumstances and the relevant factors, the Commissioner considers it appropriate to grant an extension of the replacement asset period to 30 June 20XX. This ruling applies for the following period: Year ending 30 June 20XX The scheme commences on: 1 July 20XX

3

You had a capital gains tax (CGT) event during the 20XX financial year. The CGT event resulted in a capital gain which was rolled over under the small business roll-over. You intended to purchase a family member's interest in an asset as a replacement asset, but this recently has fell through. You have actively been looking for another replacement asset since. However, due to various circumstances outside your control such as the COVID-19 restrictions and limited suitable replacement assets within your district, it is taking longer than the two-year period to secure a replacement asset. Assumption The entity meets the requirements for the CGT small business concessions as outlined in the ITAA 1997 Subdivision 152-A.

4

Income Tax Assessment Act 1997 subsection 104-190(2)