TTM08330 | Chargeable gains: Roll-over relief

Depreciating asset becomes a tonnage tax asset

Normal rules continue to apply if the new asset is a depreciating asset

Where the new asset is a depreciating asset, of which a ship is a good example, the roll-over relief will have been given by holding over the gain, rather than deducting it from the cost of the new asset. In such a case, the full amount of the gain will eventually be brought into account for tax purposes even if the new asset subsequently becomes a tonnage tax asset.

The normal roll over provisions TCGA92/S154 will therefore continue to apply if the new asset is a depreciating asset. See CG60370.

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