The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The conditions for claiming rollover relief (also known as replacement of business assets relief) and the mechanics of a claim for full relief are detailed in the Roll-over relief for traders guidance note.
This guidance note considers occasions where either the amount of roll-over relief is restricted or where the amount of the gain qualifying for roll-over relief is restricted. In either of these cases, this will mean a proportion of the gain remains chargeable following the roll-over relief claim, therefore this guidance note also considers the interaction of roll-over relief with other capital gains tax (CGT) reliefs.
Where the trader reinvests only part of the proceeds of an old qualifying asset in the acquisition of a new qualifying asset the roll-over relief claim is restricted.
The gain remaining chargeable is the amount of the proceeds not reinvested:
Chargeable gain = Proceeds from sale of old asset – cost of new asset
This is illustrated by the following proformas.
Gain on the sale of the old asset:
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