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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Roll-over relief: interaction with other reliefs

TCGA92/S162, TCGA92/S163 & TCGA92/S164

Claims to roll-over relief take priority over the mandatory reliefs provided byTCGA92/S162 on transfer of a business to a company and TCGA92/S163 and TCGA92/S164 onretirement, other than on ill-health grounds.

Where a claim to roll-over relief is made after relief under Sections 162, 163 or 164 hasbecome final, computations of those reliefs will need to be reopened and revised, so faras is possible, to give effect to the roll-over relief claim.

Where relief has been given under Section 162, it may not be possible fully to unwind theconsequences of that relief. Relief under Section 162 reduces the cost of acquisition ofshares. Roll-over relief reduces the cost of acquisition of a new qualifying asset insteadof reducing the cost of the shares. Where, before a roll-over relief claim is admitted,any of those shares have been disposed of and any assessment on the chargeable gain ondisposal has become final and conclusive, there is no provision which enables thatassessment to be reopened to admit further allowable expenditure. In that situation, theonly remedy open to the taxpayer is to refrain from making or proceeding with the claim toroll-over relief.