What is Rollover Relief? When a capital gain is made on the disposal of a business asset, it is possible to defer the gain by rolling it over against the cost of acquiring a replacement business asset. What are the conditions for the relief? What is a business asset? 

A guide for subscribers.

At a glance

CGT Rollover Relief is available to individuals and companies.

  • A capital gain made on the disposal of a business asset is deferred by rolling it over against the cost of acquiring a replacement business asset.
  • Relief is restricted when the proceeds of the disposal of the first asset are not fully reinvested in the new one.
  • The new asset must be purchased within a four-year window, starting 12 months prior to disposal and ending three years after.
  • The assets do not have to be of the same type.
  • The gain will be temporarily frozen, rather than rolled over, if the new asset has a useful economic life of 60 years or less.
  • A company may deduct the indexation allowance (up to 31 December 2017) before rolling over its gains.
  • Business Asset Disposal Relief (Entrepreneurs' Relief) cannot be deducted from a gain before it is rolled over.
  • The relief is extended to groups so that a gain made by one company can be rolled into the purchase of a qualifying asset by another group company subject to certain conditions.
  • Non-UK residents can claim Rollover Relief on interests UK land, even where they are not used in a business.