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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Groups: business asset roll-over relief: the same person rule (2), no need to be members at same time

For Section 175(2A) to apply, the company which makes the disposal must be a member of a group of companies when it makes the disposal. The company which makes the acquisition must be a member of that same group of companies when it makes the acquisition. But it is not necessary for the two companies to be members of the same group of companies at the same time. Neither company needs to be a member of that group of companies at the time the claim to roll-over relief is made by them. So it is important to ensure that the claim is properly made by both companies before it is agreed.

EXAMPLE

Company B disposed of a trade asset in 2010 when it was a member of the A group. In 2011 it left the group. In 2012 company C which was at that time a member of the A group acquired a trade asset. If all other conditions for relief are satisfied, relief will be available even though B has ceased to be a member of the A group.

For roll-over relief purposes the acquisition of the new asset can take place at any time in the period of four years beginning one year before and ending three months after the disposal of the old asset.