Roll-over relief is sometimes referred to as 'replacement of business assets' relief, as this allows traders to defer capital gains tax (CGT) when they sell a business asset and replace it with another (ie reinvesting the proceeds).

Roll-over relief works by deferring the amount of the gain and reducing the base cost of the new asset purchased.

Full roll-over relief is not always available (see below).

Qualifying persons

Roll-over relief can only be claimed by persons carrying on a trade (eg sole traders, partners in partnership, companies or trustees / personal representatives carrying on a trade). This guidance note concentrates on claims made by individuals. For details of the rules for companies, see the Roll-over relief guidance note (subscription sensitive). For more on the rules as they apply to trustees, see the Other capital gains business asset reliefs guidance note (subscription sensitive). TCGA 1992, ss 152(1), 158(1)

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