Tax tip: Rollover relief

Rollover relief is a very valuable and well known form of capital gains tax relief that allows tax on a gain to be deferred when a new asset is purchased within the qualifying time period. The legislation covering rollover relief is relatively sparse and therefore it is important to make sure you are aware of the nuances that relate to the claims to ensure that you make the most of the opportunity to defer any tax due.

Normally when we talk about rollover relief we phrase it in such a way that it implies that the funds from the sale of the old asset are being used to purchase a replacement asset indeed the legislation itself uses the heading ‘replacement of business assets’. It is important to note that there is no tracing of funds from the sale to the purchase and that the only thing that matters is...