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HMRC internal manual

Capital Gains Manual

Roll-over relief: compulsory acquisition of land: computation of relief

TCGA92/S247 (2) - (5)

As with TCGA92/S152 (1), where the whole of the consideration for the old land is applied in purchasing the new land and a claim is made

  • the disposal of the old land is treated as being for such consideration as would give rise to no gain and no loss; and
  • the allowable expenditure on the new land is reduced by the excess of the consideration received for the old land over the consideration above.

Where part only of the consideration for the old land is invested in new land there may be a partial reduction in the chargeable gain. The guidance at CG60400 explains how to work out the amount of the reduction.