HMRC internal manual

Capital Gains Manual

CG60250 - Roll-over relief: TCGA92/S152

To enable traders to modernise, expand and relocate without loss of capital to an immediate tax charge, TCGA92/S152 provides for deferment of capital gains charges on disposals of certain assets. The relief may be claimed where the proceeds of disposal of qualifying assets are applied, within specified time limits, in acquiring new qualifying assets. The relief takes the form of a reduction in consideration for disposal of the old assets and either a reduction in the cost of acquisition of the new assets or a suspension of the capital gains charge until the occurrence of certain specified events.

FA 2002 Schedules 29 and 30 (now Corporation Tax Act 2009 Part 8) introduced changes to roll-over relief for companies only from 1 April 2002. Individuals and trustees are not affected by these changes.

In general, roll-over relief ceases to be available to companies where intangible fixed assets are acquired or disposed of on or after 1 April 2002. See CG61030+.

For an alternative treatment of compensation etc:-

  • used to restore an asset (other than a wasting asset) not lost or destroyed see CG15700+, and
  • used to replace an asset (other than a wasting asset) which is lost or destroyed, see CG15740+, and
  • used to replace land disposed of to an authority exercising or having compulsory powers, see CG61900+.

Relief could, in certain circumstances, be allowed to a company on disposals of shares in exchange for Government stock on nationalisation of aircraft and shipbuilding etc. companies.