Glossary · UK
What is Business Asset Rollover Relief?
A capital gains tax relief that defers the gain on selling a business asset when the proceeds are reinvested in a new qualifying business asset.
Full Definition
Business Asset Rollover Relief lets a business defer the capital gains tax on disposing of a qualifying asset where the proceeds are reinvested in another qualifying asset used in the trade. Rather than paying CGT now, the gain is rolled over by deducting it from the cost of the replacement asset, which reduces that asset's base cost and so increases the gain on its eventual disposal. Qualifying assets include land and buildings, fixed plant and machinery, and goodwill, used for the purposes of the trade. To get full relief you must reinvest all the proceeds; if you reinvest only part, relief is restricted and some gain becomes chargeable immediately. The replacement asset must normally be bought within a window running from one year before to three years after the disposal. The relief is available to sole traders, partnerships and companies, although companies pay corporation tax on chargeable gains rather than CGT. For individuals, any gain that crystallises is taxed at the 2026/27 rates of 18% or 24%, after the 3,000 annual exempt amount. Special rules apply to depreciating assets, where the gain is held over for up to ten years instead.