Commentary

C3.302A Entitlement to rollover relief—persons entitled

Capital gains tax
Capital gains tax | Commentary

C3.302A Entitlement to rollover relief—persons entitled

Capital gains tax | Commentary

C3.302A Entitlement to rollover relief—persons entitled

Rollover relief—spouses and civil partners

Husbands and wives and members of a civil partnership are separate persons for rollover relief purposes, even if they are living together. Their disposals and acquisitions must therefore be considered separately. Where an asset is jointly held by both spouses or both civil partners, regard must be had to each spouse's or partner's beneficial interest. In Tod v Mudd1 the taxpayer wished to rollover a gain on the sale of the goodwill in his business into the purchase of a country house from which he and his wife planned to run a hotel. They purchased the house as tenants in common, 75% by the husband and 25% by his wife. The house itself was used 75% for business and 25% privately. It was found that the husband's entitlement to rollover relief was restricted to his 75% undivided share of 75% of the property used for the purposes of the business.

A spouse or civil partner may roll over the gain on the disposal of an old asset that he or she owned into a replacement asset acquired from his spouse or partner2.

HMRC has previously stated3 that expenditure by one spouse or civil partner does not entitle the other to relief, even where the assets are jointly owned, but this guidance has been archived. That previous guidance stated that rollover relief is not generally available in respect of an asset that is owned by one spouse or civil partner and used

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial