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HMRC internal manual

Capital Gains Manual

Roll-over relief: compulsory acquisition of land: introduction


TCGA92/S247 provides that where land is disposed of by any person on or after 6 April 1982, to an authority exercising or having compulsory powers, see CG61940, relief may be claimed where further land, not being excluded land, see CG61906, is acquired, see below. The relief is modelled closely on the roll-over relief for replacement of business assets, see CG60250+.

TCGA92/S247 (1)

The relief may be claimed where there is:

  1. a disposal of land (referred to as the `old’ land),
  2. to an authority exercising or having compulsory powers,
  3. by any person (referred to as the `landowner’) including an individual, trustee or company.

The landowner must not have taken any step to make known his willingness to dispose of the old land to the authority or others by advertising or otherwise, see CG72202.

The consideration for the disposal of the old land may include `severance’ compensation, see CG72119.

The landowner must apply the whole or part of the consideration for the disposal of the old land in acquiring other land (referred to as `new’ land, see CG61906). For guidance on the application of disposal proceeds, see CG60770. TCGA92/S247 (5) (b) permits relief to be given on a provisional basis if an unconditional contract is entered into for the acquisition of new land, see CG60620.

There is no requirement that the old or the new land is used for any particular purpose such as a trade, but see CG61906 as regards a `dwelling house’.

TCGA92/S247 (5A) modifies the rules in TCGA92/S247 for groups of companies. The modifications are described at CG45965.

TCGA92/S248A to S248E legislate what was Extra-Statutory Concession D26 and provide a form of roll-over relief modelled on TCGA92/S247 for exchanges of joint interests in land, see CG73002+.