Rollover relief is only available where both the asset disposed of and the replacement asset fall within one of the following nine classes, classes (1), (7A) and (8) being subdivided into two heads1. It is not necessary for the old and the new assets to belong to the same class. The Treasury has the power to add classes of asset by statutory instrument2.
Class 1 Head A—land and buildings
Any building or part of a building and any permanent or semi-permanent structure in the nature of a building, and any land, provided that it is both occupied and used for the purposes of the trade3.
The term land is defined4 for chargeable gains purposes as including, unless the context requires otherwise, messuages, tenements, and hereditaments, houses and buildings of any tenure. However, land and buildings are treated as separate assets for this purpose and separate claims can be made for each asset5. It is, therefore, possible that a claim could be made where it would otherwise be prevented because insufficient sale proceeds have been invested in new assets. See Example 2 in C3.305A.
An asset does not qualify for relief under this class where the trade consists of dealing in or developing land6, unless a profit on the sale of the land would not form part of the trading profit; in that case, the trade is not treated as dealing in land as far as that property is