Rollover relief

Rollover relief for replacement business assets

Claims for relief on the replacement of business assets under TCGA 1992 ss 152–158 (see Division C3.3), usually referred to as roll-over relief, were less common under the taper relief rules because the amount which could be rolled over was the capital gain before taper relief. Therefore, it was often considered preferable to pay some tax on the disposal of the original asset, rather than to roll-over a potentially large gain into the new asset.

Under entrepreneurs' relief the position is different and it may be considered wiser to roll-over the gain where possible in order not to utilise part of the lifetime limit of entrepreneurs' relief