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Home / Simons-Taxes /Capital gains tax /Part C3 Capital gains exemptions and reliefs /Division C3.3 Replacement of business assets (rollover relief) /Rollover relief—acquisition of replacement assets / C3.305A Rollover relief—limits to relief
Commentary

C3.305A Rollover relief—limits to relief

Capital gains tax

To qualify for full rollover relief an amount equal to the whole of the proceeds of disposal of the old asset, net of incidental costs of disposal, must be reinvested in a replacement qualifying asset. Partial relief, as described below, is available where a lesser amount is reinvested in the new asset.

The amount of relief is also restricted where there is only partial use of the business assets for business purposes. In the case of a building this may be where the building is the old asset or the new asset and only part of the building is used for business purposes. In the case of any qualifying asset which is the old asset, the restriction applies if the taxpayer did not use the asset for the purposes of the business during part of the period of ownership. See Partial use of assets for business purposes below.

Partial reinvestment of disposal proceeds

A limited amount of relief may be claimed where an amount less than the whole proceeds is reinvested, provided that the amount not reinvested

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Web page updated on 17 Mar 2025 16:16