{"id":16409,"date":"2023-08-05T03:25:55","date_gmt":"2023-08-05T03:25:55","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=16409"},"modified":"2023-09-20T09:10:46","modified_gmt":"2023-09-20T09:10:46","slug":"business-asset-rollover-relief","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/employment\/taxation\/capital-gains\/business-asset-rollover-relief\/","title":{"rendered":"Business Asset Rollover Relief Eligibility | How to Claim BARR"},"content":{"rendered":"

What is Capital Gains Tax Rollover Relief?<\/h2>\n

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The main function of business asset roll-over relief is deferring Capital Gains Tax when disposing of certain assets and acquiring other assets.<\/p>\n

So, you can postpone the relief on a new asset as long as it costs at least the same as the amount realised when you sold the old asset.<\/p>\n

You can review the latest guidelines on CGT reliefs in the Capital Gains Manual<\/a> (updated by HM Revenue and Customs).<\/p>\n

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An Example:<\/strong><\/p>\n

You sell your old shop for \u00a385,000 and use the money to buy a bigger and more modern new shop that costs \u00a3110,000.<\/p>\n

If you use HS290 to claim Business Asset Rollover Relief, you will be able to delay paying tax on the realised gains made by selling the old shop until you have sold the new one.<\/p>\n<\/div>\n

So, what would happen if you acquire a new asset that costs less than the amount you got by ‘disposing’ of the old asset? In this case, you may qualify for ‘partial’ relief.<\/p>\n

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An Example:<\/strong><\/p>\n

You sell your old shop for \u00a385,000 and use the money to buy a new shop that costs \u00a375,000. Making a gain would mean you still need to pay some Capital Gains tax (CGT). But, you may also qualify for some relief.<\/p>\n<\/p><\/div>\n

Note<\/strong>: Another section contains information explaining how to claim Business Asset Disposal Relief<\/a> (known as the Entrepreneurs’ Relief until 6th of April 2020).<\/p>\n

A similar kind of tax relief is available if you ‘dispose of’ land that has been compulsorily purchased – assuming you use it to buy new land. In this case, CGT would not be liable until you sell or ‘dispose of’ the new land.<\/p>\n

Furthermore, the system of ‘provisional relief’ relates to gains made on the disposal of old assets after declaring an intention to acquire new assets – and then claim the relief.<\/p>\n

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Qualifying for Business Asset Rollover Relief<\/h2>\n

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:<\/p>\n