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Assets used by claimant's personal company

An individual can claim rollover relief in respect of the disposal and replacement by them of an asset where the trade or trades in question are carried on by a company which, at both the time of disposal and the time of acquisition of the assets concerned, is the individual's 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 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 that individual³.