Capital gains may be liable on the proceeds made by the sale or disposal of old assets. Investing the profit into new business assets can defer the chargeable gain.
CAPITAL GAINS TAX ROLLOVER RELIEF: Use this section to check whether you are eligible for Business Asset Rollover Relief.
Find out how to delay paying Capital Gains Tax and how you, as a taxpayer, can claim CGT deferral relief.
As a rule, taxpayers may be eligible to delay paying Capital Gains Tax if:
The effect of Business Asset Rollover Relief is that you can delay or defer paying Capital Gains Tax until you actually sell the new trading asset.
At that time you may then be required to submit a tax payment for the gain from the original asset (old business asset).
Spouses and civil partners get classed separately for roll-over relief. But, in most cases you may be eligible to claim:
You may be able to claim relief on certain business assets such as property, land, fixed plant, or machinery. But, to qualify for Capital Gains Tax Rollover Relief:
Different rules apply for partial relief if:
Note: It is always best to seek advice from a professional tax adviser or an accountant.
You need to fill in a special form before a taxpayer can make a rollover relief claim. Download the Business Asset Roll-over Relief: HS290 Self Assessment helpsheet from HMRC. Make sure you include form HS290 with your Self Assessment tax return.
Note: You must make any claim to delay or defer Capital Gains Tax Rollover Relief within four (4) years of the end of the tax year when you invested in the new asset (or disposed of the old trading asset).
How Business Asset Rollover Relief Works in the United Kingdom