The proceeds made by the sale or disposal of old assets can be invested into new business assets to defer the chargeable gain.
CAPITAL GAINS TAX ROLLOVER RELIEF: Use this section to check whether you are eligible for Business Asset Rollover Relief to delay paying Capital Gains Tax and how you, as a taxpayer, can claim CGT deferral relief.
As a general rule, taxpayers may be eligible to delay paying Capital Gains Tax if you sell or 'dispose of’ some business assets or interest in assets, if you use all or some of the proceeds to invest in new trading assets.
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).
Even though spouses and civil partners are classed separately for roll-over relief, in most cases you may be eligible to claim;
Even though you may be able to claim relief on certain business assets such as property, land, fixed plant or machinery, in order to qualify for Capital Gains Tax Rollover Relief;
Different rules apply for partial relief if;
Note: Seek advice from a professional tax adviser or accountant.
Before any taxpayer makes a rollover relief claim you should fill in the form found at the HM Revenue and Customs’ (HMRC) helpsheet HS290 Business asset roll-over relief (2016). Make sure that you include the Form HS290 with your Self Assessment tax return.
Note: Any claim to delay or defer Capital Gains Tax Rollover Relief must be made within four years of the end of the tax year when you invested in the new asset (or disposed of the old trading asset).
Business Asset Rollover Relief; UK Rules Updated 2017