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HMRC internal manual

Capital Gains Manual

Land: exchange of joint interests: roll - over relief

TCGA 1992/S248B

Where the relevant conditions are met then the landowner may make a claim for relief. The time limit in TMA70/S43 applies, see CG60600.

The amount of the relief depends on whether or not the interests exchanged are of equal value.

  1. Where the amount or value of the consideration for the disposal of the relinquished interest is equal to or less than the market value of that interest, the landowner is treated
* as if the consideration were of such amount such that there is no gain and no loss

and

* as if the consideration for the acquisition of the acquired interest were reduced by the excess of the actual consideration for the disposal over the no gain/no loss consideration which the landowner is treated as receiving.
  1. Where the amount or value of the consideration for the disposal of the relinquished interest exceeds the market value of that interest, and

the excess (“the excess consideration”) is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal, the landowner is treated

* as if the amount of the gain were reduced to the amount of the excess consideration

(if the gain is not all chargeable gain the amount of the chargeable gain is reduced proportionately), and

* as if the consideration for the acquisition of the acquired interest were reduced by the amount by which the gain is reduced (or the amount by which the chargeable gain is proportionately reduced where that applies).

Note that the relief claimed by the landowner has no effect on the capital gains tax treatment of any co-owner.

See the examples at CG73008.