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Where land is disposed of to an authority with compulsory powers (see C2.1115), and the whole or part of the consideration received is applied in the purchase of other land (excluding certain types of land, see 'Reinvestment of the consideration in land' below), the person making the disposal may be able to defer the gain via a form of rollover relief¹.

Rollover relief may be claimed on a provisional basis where the reinvestment is not made until after the tax return has been submitted (see below).

Rollover relief does not affect the acquisition cost of the land for the acquiring authority. Nor does it affect the amount to be taken into account in computing any gain or loss accruing to the seller of the replacement land².

For the tax treatment where the land acquired via compulsory purchase represents a part disposal of the interest in the land, see C2.1117.

For the time of disposal where the land is subject to compulsory acquisition, see C2.1115.