½Û×ÓÊÓƵ

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 of rollover relief is as follows:

1. Ìý

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

2. Ìý

   (b)ÌýÌýÌýÌý 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

Where the claimant is a company, the amount in (a) takes account of indexation allowance where available (see C2.301), 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 of an asset held by a company on 6 April 1965, see C3.303A.

Where indexation allowance