Glossary · UK
What is Business Asset Rollover Relief?
A Capital Gains Tax relief that lets you defer the gain on a business asset by reinvesting the proceeds into a replacement qualifying business asset.
Full Definition
Business Asset Rollover Relief lets you defer Capital Gains Tax (CGT) when you sell or dispose of certain business assets, such as land, buildings or fixed plant and machinery used in your trade, and reinvest the proceeds in new qualifying business assets. Instead of paying tax on the gain immediately, the gain is 'rolled over' by reducing the cost of the replacement asset, so tax becomes due later when that replacement is eventually sold without further reinvestment. To qualify, you generally must buy the new assets within a window running from one year before to three years after the disposal, and both the old and new assets must be used in the business. The relief helps businesses reinvest and grow without an upfront CGT charge. For 2026/27 the CGT rates are 18% within the basic-rate band and 24% above, with an Annual Exempt Amount of GBP 3,000, so deferring a gain can still preserve real value. Claims are made to HMRC.