CG60270 | Reliefs: replacement of business assets (roll-over relief): old assets

Relevant assets

To qualify for relief, the old assets must be relevant assets (see CG60280).

There is no geographical restriction on the location of the assets, but they must be subject to Capital Gains Tax or, for companies, Corporation Tax.

Used only for the purposes of the trade throughout the period of ownership

Old assets must be used only for the purposes of the trade throughout the period of ownership. Relief is restricted if this is not the case (see CG60292).

For roll-over relief, the period of ownership is the period of beneficial ownership and possession. This may differ from the period between the date a person is treated as acquiring an asset for capital gains purposes and the date they are treated as disposing of it. For example, section 28 of the Taxation of Chargeable Gains Act (TCGA) 1992 treats an asset acquired under an unconditional contract as acquired on the date of the contract, even if beneficial ownership is not obtained until completion.

Under section 152(9) TCGA 1992, the ‘period of ownership’ does not include any time before 31 March 1982.