Commentary

C3.307 Rollover relief—method of giving relief on non-depreciating assets

Capital gains tax
Capital gains tax | Commentary

C3.307 Rollover relief—method of giving relief on non-depreciating assets

Capital gains tax | Commentary

Calculating and claiming rollover relief

C3.307 Rollover relief—method of giving relief on non-depreciating assets

Where a person has disposed of an asset and used the entire proceeds to acquire a replacement asset, all the conditions for rollover relief described in C3.301–C3.305A are satisfied, and the new asset is not a depreciating asset (see C3.311), the effect is as follows:

  1.  

    (a)     the consideration for the disposal is treated as such an amount as produces no gain and no loss; and

  2.  

    (b)     the difference between the actual consideration for the disposal and the amount in (a) is deducted from the allowable acquisition cost of the replacement asset1

Indexation allowance is no longer available in respect of disposals by individuals or trustees but remains available to companies subject to being frozen from 1 January 2018 (see C2.301). The amount in (a) takes account of indexation allowance where available, and is in general the sum of the original cost and any indexation allowance on that cost. As regards the disposal of an asset held on 31 March 1982 or 6 April 1965, see C3.303A.

Business asset disposal relief (formerly entrepreneurs' relief) may be available to individuals and trustees who dispose of business assets (see

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