Commentary

C3.303A Rollover relief—assets qualifying for relief: further rules

Capital gains tax
Capital gains tax | Commentary

C3.303A Rollover relief—assets qualifying for relief: further rules

Capital gains tax | Commentary

C3.303A Rollover relief—assets qualifying for relief: further rules

Assets used by claimant's personal company

An individual can claim rollover relief in respect of the disposal and replacement by him of an asset where the trade or trades in question are not carried on by him but by a company which, at both the time of disposal and the time of acquisition of the assets concerned, is his personal company1. HMRC considers that both assets should be used for the purposes of the trade of the same personal company2.

TCGA 1992, s 157 extends the scope of rollover relief to such assets and, consequently all other conditions of the relief which apply to old and replacement assets used in a trade carried on by the owner of the assets must also be satisfied. Relief is available to the individual even if rent is paid to him by the company for the use of the asset.

Meaning of personal company

An individual's personal company is one in which not less than 5% of the voting rights are exercisable by him3. The word exercisable means capable of being exercised, whether in fact exercised4. The individual does not have to be a director or employee of the company.

Whether or not there was a personal company, and the meaning of the phrase 'voting rights which are exercisable in a company' were considered in Boparan v Revenue and Customs Comrs5. In that case, a married couple owned some chicken farms, which they let to a company (C). 99·87% of

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