Chargeable gains: Roll-over relief
Depreciating asset becomes a tonnage tax asset
Normal rules continue to apply if the new asset is a depreciating asset
Where the new asset is a depreciating asset, of which a ship is a good example, the roll-over relief will have been given by holding over the gain, rather than deducting it from the cost of the new asset. In such a case, the full amount of the gain will eventually be brought into account for tax purposes even if the new asset subsequently becomes a tonnage tax asset.
The normal roll over provisions S154 TCGA 1992 will therefore continue to apply if the new asset is a depreciating asset. (see CG60370).
|TCGA92/S154 (new assets which are depreciating assets)||CG60370|