Income tax: capital gains: what are the CGT implications of removing a post-CGT building from post-CGT land and relocating it on pre-CGT land?

The removal of the building is not a disposal of an asset and on removal, the building and land are split into separate assets (see TD 93/D75).

The cost base of the post-CGT building and land is apportioned under subsection 160ZH(12) of the Income Tax Assessment Act 1936.

On relocation of the building to the pre-CGT land, the building continues to be a separate post-CGT asset (see TD 93/D77).

Any capital improvements made to the pre-CGT land will be a separate asset provided the requirements in subsection 160P(6) are satisfied.

The pre-CGT land remains a pre-CGT asset. Upon disposal of the land and building, a capital gain or capital loss may only arise in respect of the building (and capital improvements if they are treated as a separate asset).