What is Business Asset Rollover Relief?

04 Jul 2018

Business Asset Rollover Relief allows taxpayers to delay paying Capital Gains Tax (CGT) on gains when they sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief means that the CGT due on the gain of the old asset is postponed. The amount of the gain is effectively rolled over into the cost of the new asset and any CGT liability is deferred until the new asset is sold.

Where only part of the proceeds from the sale of the old asset is used to buy a new asset, a partial rollover claim can be made. It is also possible to claim for provisional rollover relief where you expect to buy new assets but haven’t done so yet. Interestingly, rollover relief can also be claimed if you use the proceeds from the sale of the old asset to improve assets you already own. The total amount of rollover relief is dependent on the total amount reinvested to purchase new assets.

There are qualifying conditions to be met to ensure entitlement to any relief. These include ensuring that you purchase the new assets within 3 years of selling or disposing of the old ones (or up to one year before). Under certain circumstances, HMRC has the discretion to extend these time limits. In addition, both the old and new assets must be used by your business and the business must be trading when you sell the old assets and buy the new ones.

Planning note

It may be more beneficial to claim entrepreneurs’ relief (if eligible) and pay the CGT due at the lower 10% rate at the time of the disposal of the old asset.

Planning for significant CGT disposals is recommended and we would be happy to help advise you on the best course of action to take.

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Stratford Upon Avon

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Timothy's Bridge Road,
Stratford-Upon-Avon,
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CV37 9NP
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Case Studies

Grenfell James Associates - The Senior Team

Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.

Chris Wood

Managing Director ACMA

Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.

 

Alex Enstone

Operational Director MAAT

David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.

David Murphy

Tax Director ACCA

Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.

Hannah Watson

Client Manager ACCA

JP qualfied in 2014, having worked for Grenfell James since 2007. He is a client manager for a diverse portfolio of clients including those in the manufacturing and serivce industries. 

 

Jon-Paul Lawrence

Client Manager ACCA

"In the past we have been unfortunate to work with some less than reputable accountants. Grenfell James Associates have restored our faith in the accountancy business and assisted us with every aspect of our financial responsibilities. We now have a renewed confidence in our finances, knowing that all our affairs are being dealt with in an efficient and professional manner. Thank you to the whole team and we look forward to many years of working with you. "

NPD Design Consultants Ltd

"Grenfell James have been an amazing partner, managing the pressures that come with taking a start up to a multi million pound concern in 18 months is never easy, but these guys were both strategic and responsive with great ideas and exacting execution   "

Roy Ferguson. The Perfect Cosmetics Company.

"~After contacting various accountants about what seemed to be a complicated capital gains issue, I spoke with Damien.He is very approachable, professional and immediately reassured me that it was straightforward. He obviously had experience of the matter.I met him to give him my paperwork and I felt I had no need to worry.He completed the tax return very quickly and the cost was reasonable.I highly recommend Grenfell James Associates and Damien.   "

Mrs Jones

"Grenfell James provide an excellent service with all accounting details explained in a very friendly and understandable manner. I have no hesitation in recommending them to any business wanting concise and reliable service at a very reasonable price.   "

Mr I Cameron

"Since taking over the accounting for our two businesses, Grenfell James have taken away any stress we have had in the past with our accounts. They have been very approachable and easy to talk to, enabling us a better understanding of how we need to run our business. "

Paul Stanley. A S Contracts Ltd.

"I think you do a great job. You are so approachable and flexible in terms of when you can meet us. "

Mckechnies independent tea and coffee bar.

"For our cash hospitality business, prompt, accurate numbers matter, and the ability to call quickly for break-downs and analysis. GJ is always responsive and ready to be on the case. We never feel short-changed. "

Andrew Knight. The Howard Arms Ilmington

"Thank you Grenfell James for providing an excellent service for both me and Proco. Everything you have said and done has been spot on and on time. A great team and very friendly. Regards, from a very happy customer. "

Proco Coatings & Laminates

"“Grenfell James was instrumental in me setting up my business 10 years ago and Hannah Watson has been with me every step of the way since. Focusing on delivering my business means I don’t want to be worrying about my accounts, VAT and tax issues. Hannah and the team take all of that off my hands and pretty much act as my finance team, advising on everything from everyday payroll to international invoicing. I couldn’t have achieved what I have without them and value their personal attention highly - everyone in the team is extremely approachable and will take time to explain anything I need to know”.   "

Mary Keeley - Mary Keeley Consultancy

"Fantastic all round service level. Tax return peace of mind and highly efficient. Thank you. "

Mr J McCarthy

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  • 13, The Courtyard
    Timothy's Bridge Road
    Stratford-Upon-Avon
    Warwickshire
    CV37 9NP
  • 01789 294484
  • 7-8 Stratford Place
    Mayfair
    London
    W1C 1AY

  • 0207 495 0304
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