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HMRC internal manual

Capital Gains Manual

Roll-over relief: qualifying assets


For the purposes of TCGA92/S152, the classes of qualifying assets are:-

Class 1A(1) certain buildings, see CG60970+
Class 1A(2) certain land, see CG60970+
Class 1B certain fixed plant or machinery, see CG60960
Class 2 ships, aircraft and hovercraft, see CG61020
Class 3 satellites, space stations and spacecraft (including launch vehicles),
  see CG61020
Class 4 goodwill*, see CG68000+ and CG61030+
Class 5 milk and potato quotas*
Class 6 ewe and suckler cow premium quotas*
Class 7 fish quota*
Class 7A payment entitlements under the single payment scheme*
Class 8A Lloyds syndicate capacity, see CG61080
Class 8B Lloyds members’ agent pooling arrangements, see CG61080


Note that roll-over relief is not available on the disposal, either whole or in part, of a right to unascertainable future consideration which is acquired on the disposal of an asset within Section 155, see example 1 in CG14970.


*Note that for companies, roll-over relief ceases to be available where intangible fixed assets are acquired or disposed of on or after 1 April 2002, see CG61030.

ESC/D22 & ESC/D25

Expenditure on new buildings or additions to existing buildings occupied and used for trade etc purposes qualifies under Section 155 Class 1A (1). By concession, relief may also be given for gains on disposals of old assets against

  1. capital expenditure on improvements to qualifying assets which are either already in use (and for land and buildings, occupied) only for the purposes of the trade or which are taken into trade use (and occupation) on completion of the enhancement work and
  2. the cost of acquisition of a further interest in qualifying assets (other than the old assets) which are already in use (and occupation) only for trade purposes.

In either case, expenditure on enhancement or acquisition of the further interest is to be treated as the acquisition of new assets which are taken into trade use on the acquisition.

Oil licences

TCGA92/S193 which provided that an oil licence was not a qualifying asset for roll-over relief within Class 1A Section 155 ceased to have effect after 30 June 1999.

This change to the roll-over relief rules applies to acquisitions or disposals of oil licences on or after 1 July 1999. Almost all the taxpayers affected by this change are dealt with by LBS Oil & Gas. Due to the existing TCGA92/S198, there are special restrictions on roll-over relief claims related to the oil industry. If you receive a claim for roll-over relief which relates to an acquisition or disposal of an oil licence you should refer to the LBS Oil & Gas intranet site for details on how to get advice.