Notice of Withdrawal
CGT Determination Number 37 (TD 37) states that if there is an extension or renewal of a statutory licence that was acquired pre-CGT and rollover relief is available, any capital improvement to that asset may be regarded as a separate asset. It explains that a capital improvement is taken to have been made to the asset if the fresh licence contains terms and conditions which make it more valuable.
TD 37 was issued prior to 1 July 1992 and is therefore not a public ruling for the purposes of Division 358 of the Taxation Administration Act 1953 . It referred to provisions that were repealed by Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 with effect from 14 September 2006.
TD 37 involves a straight forward application of the law. Subdivision 124-C of the Income Tax Assessment Act 1997 (ITAA 1997) deals with statutory licences where it provides there is a rollover if the conditions in subsection 124-140(1) of the ITAA 1997 are satisfied. Subdivision 108-D of the ITAA 1997 contains rules about when a capital improvement to a CGT asset is treated as a separate CGT asset. Capital improvement to a CGT asset that is a statutory licence for which a rollover may be available is dealt with in section 108-75 of the ITAA 1997.
As TD 37 is not interpretative in nature, this Determination is not considered necessary and is withdrawn.