Commentary

C3.302 Entitlement to rollover relief—business activities

Capital gains tax
Capital gains tax | Commentary

C3.302 Entitlement to rollover relief—business activities

Capital gains tax | Commentary

Entitlement to rollover relief

C3.302 Entitlement to rollover relief—business activities

Rollover relief not only applies to assets used for the purposes of a trade but also, with the necessary modifications, to assets used for the purposes of certain business activities as follows1:

  1.  

    •     a profession, vocation, office or employment2. These terms and the term trade have the same meaning as in the Income Tax Acts3, see B1.401 and E4.205A

  2.  

    •     the discharge of the functions of a public authority4

  3.  

    •     the commercial occupation of woodlands5

  4.  

    •     non-profit-making professional and trade protection organisations6

  5.  

    •     an unincorporated association or other body chargeable to corporation tax which is not established for profit, and whose activities are wholly or mainly carried on otherwise than for profit, in respect of the disposal of assets used by the body for its own activities (in the case of land and buildings, both used and occupied by the body for its own activities); examples of such bodies include trade unions7, sports clubs and local constituency associations of political parties8

  6.  

    •     a company in which such an unincorporated association or other body (the parent body) holds at least 90% of the ordinary share capital, in respect of the disposal of assets used by the parent body for its own activities (in the case of land and buildings, both used and occupied by the parent body for its own activities)9

  7.  

    •     the partition of land or other assets by partners, provided the partnership is dissolved immediately

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