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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Roll-over relief: declaration of intention to reinvest

CG60609 explains how customers can get provisional relief by making a declaration in their return of their intention to reinvest. Where a declaration is made and provisional roll-over relief is obtained in this way you should take no action until the earliest of the following events.


Claim To Roll-Over Relief

  • a claim to roll-over relief for the same disposal where the cost of acquisition of the new assets is the same as, or greater than, the specified amount. If the claim to relief is valid the provisional relief becomes substantive and you need take no further action. If the cost of acquisition is less than the specified amount you should take no action in relation to the excess until there is a further claim to relief or until the earlier of the two events below.

Withdrawal Of Provisional Relief

  • The taxpayer tells you that they no longer wish to reinvest as much as the specified amount. If the withdrawal of provisional relief takes place within the time limit allowed under TMA70/S9 for the taxpayer to amend his Self Assessment Return (12 months from the statutory filing date) then the withdrawal can be treated as an amended Return. If the withdrawal takes place outside the TMA70/S9 time limit then some or all of the relief given will need to be withdrawn depending on whether the taxpayer still intends to reinvest some of the consideration. You should follow the guidance below to recover the tax payable and take no action to recover the remainder until there is a claim to relief, a further notice from the taxpayer or the event below.

End Of Provisional Relief Period

  • The period of provisional relief automatically come to an end on the RELEVANT DAY if it has not been replaced by a claim to roll-over relief or been withdrawn by the taxpayer before that date. You should follow the guidance below to recover any tax payable. The relevant day is defined by TCGA92/S153A(5) as

Relevant Day

For Individuals

  • three years from 31 January in the year following the year in which the disposal was made. The examples at CG60704 illustrate this.

For Companies

  • four years from the end of the accounting period in which the disposal took place.


If the provisional relief has not been replaced by the relevant day by claims to roll-over relief you will have to raise an assessment for the year of disposal. TCGA92/S153A (4) provides you with the authority. Your assessment should be for the amount of tax remaining unpaid in respect of the gain on the original disposal after claims to roll-over relief. The examples at CG60704 illustrate the amount to collect.

The due date for payment of tax for interest purposes will be the date the tax would have been paid if no declaration had been made.

If you receive a declaration in a Return of an intention to reinvest a specified amount you must set a signal that action will be required when you examine the Return for the year in which the relevant day falls. The taxpayer’s continuing intention to reinvest must be monitored until reinvestment takes place or until the relevant day automatically brings the postponement to an end.

The system of provisional relief is consistent with the SA principle of taxpayer control. TCGA92/S153A does not, therefore, provide for you to be satisfied with the taxpayer’s declaration of intention. And the section does not contain provisions enabling you to recover the relief given if you consider that the taxpayer’s declared intention has changed. The deterrent of frivolous declarations lies in the taxpayer’s liability to pay interest from the time the tax should have been paid if the declared intention does not lead to an acquisition. Only if, exceptionally, the declaration is clearly found to have been made fraudulently or negligently should you consider the possibility of penalties.

Death Of Claimant

If the taxpayer dies while provisional relief is in place you should write to his or her personal representatives and ask them to withdraw the declaration. You should consider explaining that interest will continue to run if they do not, see CG60704. If the declaration is not withdrawn you cannot raise an assessment until the relevant day.