CG61932 - Roll-over relief: compulsory acquisition of land: depreciating assets

TCGA92/S248 (3)

Where the new land is a depreciating asset, such as a short lease, the guidance at CG60285 should be followed with the following modifications.

• The words new asset’ should be read as new land’,

and

• the cessation of trade use of the new land is not a chargeable occasion in relation to the held-over gain

The claim for relief on the acquisition of land that is a depreciating asset can be replaced by a new claim on the subsequent acquisition of land that is not a depreciating asset. The guidance at CG60285 sets out the conditions that must be met and explains the effect of such a claim.