There are numerous Capital Gains Tax (CGT) reliefs in the UK: when do they apply and what are the conditions for relief?

This is a freeview 'At a glance' guide to the key CGT reliefs, when they apply, and how to approach calculations.

All references are to the Taxation of Chargeable Gains Act 1992 (TCGA).

Click on the relief type for further guidance. Where a relief is available to an individual it is generally available to the trustees of a settlement. There are some exceptions, please see the detailed guide to each relief for more information.

Type of relief Gains on which type of asset Who When Section

Business Asset Disposal Relief (Entrepreneurs' Relief) (BADR)
A business and business assets, where business is a trade, profession or vocation, covering: Individual: sole trader or partner Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits S.169H to 169V
A Disposal of the shares or securities in an individual's personal company. Individual: employee or officer  
A Disposal of trust business assets. Trustees and beneficiary  

Individual: partner, or  employee/officer   
Investors' Relief

A disposal of shares acquired by subscription.

Individual: not an employee or officer, on subscription

Rollover (replacement of business assets)

Assets used for the purposes of a trade or a deemed trade including:

  • A building or any part of a building and any permanent or semi-permanent structure in the nature of a building occupied (as well as used) for the purpose of a trade. 'Trade' includes a qualifying Furnished Holiday Lettings business.
  • Any land occupied (as well as used) for the purposes of a trade.
  • Fixed plant or machinery which does not form part of a building or of a permanent or semi-permanent structure in the nature of a building.
  • Ships, aircraft, hovercraft.
  • Goodwill
  • Space stations and space vehicles
  • Milk quotas and potato quotas
  • Ewe and suckler cow premium quotas
  • Fishing quotas

There are special rules for wasting assets (assets with a life of less than 50 years) that are normally exempt from CGT.

Rollover relief does not apply in respect of the disposal of shares and securities.

Individuals & companies Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits S.152
Rollover (Incorporation Relief)

A business and its chargeable assets transferred to a company (no requirement for there to be a trade).

  • Goodwill and intangible assets. 
  • Land and property.
Individuals  On incorporation S.162
Rollover (exchanges of joint interests in land)

Land jointly held and exchanged between co-owners.

Individuals On exchange of interests S.248A to 248E

Disincorporation (Rollover)

Ended 31 March 2018

The goodwill and land and property in the transfer of a company's business (no requirement for it to be a trade) to its shareholders.

  • Goodwill.
  • Land and property which is not held as trading stock.
Company On disincorporation S.162B

Holdover (gift of business assets)









Holdover (gifts chargeable to IHT)

An asset or an interest in an asset used for the purposes of a trade, profession or vocation carried on by:

  • The donor as a sole trader or in partnership.
  • The donor's personal company, or, where their personal company is a holding company, a member of its trading group.

Shares or securities in an unlisted company, or a personal company, that is either a trading company or holding company of a trading group.

  • Personal company means a company where the individual holds at least 5% of the votes.

Transfers of agricultural property.

Relief is available to the trustees of a settlement if they carry on the trade themselves or if it is carried on by a beneficiary with a life interest in the trust.



Gifts of assets that are immediately chargeable to Inheritance Tax (IHT), or would be were it not for the IHT Nil Rate Band (NRB) these include:

  • Gifts into UK trusts, excluding settlor-interested trusts
  • Gifts that are IHT exempt, such as gifts of heritage property, works of art, gifts to political parties and transfers out of young person's settlements




















Trustees/ beneficiaries







Claimed using HS295. Time limit See Time limits

























Private Residence Relief (PRR)

Relief on the disposal of an individual's only or main private residence:

  • Land and property
  • Land restricted to a permitted area

Restrictions introduced from 6 April 2015 in respect of claims for relief by:

Individuals/ trustees

On the disposal of an only or main residence.

Claimed on tax return. Normal time limit within 12 months of filing deadline. See Time limits

Two year time limit on second property election



Useful guides on this topic

CGT Reliefs: a disposal of a business or its assets
An outline of the main Capital Gains Tax (CGT) reliefs which may apply when an individual or company replaces or disposes of a business asset, or a business, or shares in a company. You can then drill down into individual guides, track what's new, case law etc.

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