Other capital gains business asset reliefs

Produced by Tolley in association with Paul Davies at DWF

Trusts and Inheritance Tax

Guidance

This note deals with the following types of business asset reliefs:

•
rollover relief on replacement of business assets
•
incorporation relief
•
capital gains tax (CGT) deferral relief under the enterprise investment scheme (EIS)
•
CGT reliefs on company reconstructions
•
losses on loans to traders

So-called ‘business’ hold-over and business asset disposal relief, are dealt with in the Holdover relief for disposals by trustees and Business asset disposal relief ― trusts guidance notes.

Except where noted otherwise, these reliefs are available both to personal representatives and to trustees. For brevity, this note omits any further reference to personal representatives except where such reliefs specifically do not apply or are not available to them.

Rollover relief on replacement of business assets

Rollover relief enables the gain arising on the disposal of certain types of business assets to be deferred if other qualifying assets are acquired within the period commencing one year before and ending three years after the date of the disposal. HMRC may extend these

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Paul Davies

Partner at DWF LLP

I am a partner in the private client department of DWF LLP, based in Manchester. I specialize in providing advice on tax and succession planning to high net worth individuals, executors and trustees. I will assist clients in the creation of wills and lasting powers of attorney and in the creation, restructuring, and dissolution of trusts and other wealth holding vehicles whether onshore or offshore. I often act as a professional executor and trustee..He has chaired the ICAEW's Employment Taxes & NIC Committee for many years and is a past chairman of the Institute's Tax Faculty. He is also a member of two relevant technical sub-committees of the CIOT.

Popular Articles

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Owner-Managed Businesses

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Other capital gains business asset reliefs

Other capital gains business asset reliefs