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Issue:
4893
/
Categories:
Comment & Analysis
, business asset disposal relief (BADR)
, rollover relief
, Business
It’s a rollover
Key points
- Rollover relief allows traders to defer paying tax that would otherwise be due on the disposal of a capital asset used in their trade.
- Rollover relief is a deferral relief and not an exemption.
- Without the relief tax would become payable on the gain at the time of the disposal – reducing the funds available to reinvest in the new asset.
- Buildings are one of the most common assets that qualify for rollover relief along with fixed plant and machinery and goodwill (in the case of unincorporated businesses).
- The old and the new asset do not have to come from the same qualifying category.
- A particular rule applies when the replacement asset is a depreciating asset.
This article is intended for ATT students who are sitting their examinations in November 2023 and is based on legislation enacted up to and including 31 July 2022 (the cut-off date for the 2023...
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