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Rollover relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Rollover relief

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
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Rollover relief, or ‘replacement of business assets’ relief, allows traders to defer the payment of capital gains tax when they sell a business asset and replaces it with another in prescribed circumstances. Sometimes rollover relief is written as ‘roll-over relief’.

Rollover relief works by deferring the amount of the gain and reducing the base cost of the new asset by an amount equal to the rolled over gain. Full rollover relief is not always available (see below).

For groups of companies, rollover relief applies on a group wide basis (broadly, a gain made by one company can be rolled into the purchase of a qualifying asset by another group company). For more on the rules that apply to groups, see the Group gains guidance note.

Conditions for the relief

Qualifying persons

Rollover relief can only be claimed by ‘persons’ carrying on a trade (referred to in this note as a ‘trader’). This includes sole traders, partners in a partnership, companies or trustees / personal representatives carrying on a trade. More information on rollover relief for trustees can be found in the

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