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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 (3), takeovers

For the purposes of Section 175(2A) the group is defined by TCGA92/S170 including the extension to the group definition in Section 170(10), see CG45130. If the principal company of one group is taken over by another company, the original group and the enlarged group are regarded as the same group. So roll-over relief may be claimed where a disposal is made by a company in the original group and the replacement asset is acquired by any company in the enlarged group.

EXAMPLE

Company B, a member of a group headed by principal company A, makes a disposal of a trade asset in 2009. In 2010 company A is acquired by company X which already has subsidiary Y. In 2011 company Y acquires a trade asset. If the other conditions for relief are fulfilled, companies B and Y can claim roll-over relief.