EV 1052143211609currentnon-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 in subsection 104-190(2) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the replacement asset period to acquire a replacement asset?

2

Yes. The Commissioner will provide an extension the time until 31 December 2023 for the Trust to acquire a replacement asset. Having considered the reasons for the delays in acquiring the replacement, the Commissioner will provide further time pursuant to subsection 104-190(2) of the ITAA 1997 for the Trust to acquire a replacement asset. This ruling applies for the following periods : Year ending 30 June 2022 Year ending 30 June 2023 Year ending 30 June 2024 The scheme commenced on: 1 July 2022

3

You sold your asset in the financial year ending 30 June 2020, resulting in a capital gain which was rolled over under Subdivision 152-E of the ITAA 1997. Restrictions related to the COVID-19 pandemic in addition to other specific issues related to your proposed business activity hindered your plans to acquire a replacement asset within the replacement period.

4

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