Business asset rollover relief (UK capital gains)
Business asset rollover relief can defer all or part of a chargeable gain on a qualifying business asset when the proceeds are reinvested in qualifying replacement assets within the permitted period, subject to a valid claim and statutory conditions. In the straightforward full-reinvestment case the deferred gain reduces the replacement asset’s base cost. Partial reinvestment, non-business use, depreciating assets and extensions of time need separate treatment. Deferral is not necessarily permanent exemption.
Worked example
A qualifying business asset costing £60,000 is sold for £100,000 and the entire proceeds are reinvested in an eligible non-depreciating replacement costing £100,000. Assuming all relief conditions and the claim are met, the £40,000 gain is deferred and the replacement’s base cost is £60,000.
Common mistake
Treating the deferred gain as permanently exempt, or assuming partial reinvestment automatically defers the whole gain.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |