Business Asset Rollover Relief

Everything you need to know about Business Asset Rollover Relief

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

What is Business Asset Rollover Relief?

Business Asset Rollover Relief is a way that you can delay paying your Capital Gains Tax if you:

  • Sell some of your business assets (HMRC also term this ‘disposing of’ and includes giving them away or transferring them to someone else);

  • Use some or all the proceeds from that sale to buy new assets for your business.

Business Asset Rollover Relief means that you won’t need to pay any tax on those proceeds until you sell the new asset – only then might you have to pay tax on any gains you may have made from that original asset.

You might also be able to claim:

  • Provisional relief – you can claim this if you are planning to use those proceeds to buy new assets but just haven’t done so yet.

  • Relief – if you use those proceeds to improve any existing business assets you already own.

Are you eligible for this relief?

There are certain HMRC rules you need to meet to be eligible for this tax relief. These eligibility rules are:

  • You must buy the new assets within 3 years of selling (or disposing) of the old assets. Or they must have been bought up to a year before selling the old assets. If you don’t meet these timescales, you won’t be eligible for this tax relief.

  • Your business must actually be trading (doing business) – both when you sell the old assets and when you buy the new assets.

  • Both the old assets and the new assets must be for use in your business. Personal use is not eligible for the tax relief.

What kinds of assets are eligible?

The Business Asset Rollover Relief is eligible on a number of assets, including land and buildings that your business owns as well as fixed plant and machinery.

What about partial relief?

If you want to claim partial relief because you are only reinvesting part of the proceeds or the old assets were only partly for business use then it is advised that you get specialist tax advice. Our expert team are always here to help on 0330 122 9972. Similarly, the rules are different if you are planning to use the proceeds to buy depreciating assets, which means assets which will lose their value within 60 years or will last less than that. Some assets, such as certain machinery, are automatically classed as depreciating assets because HMRC don’t believe they are intended to last longer than 60 years.

How can you claim Business Asset Rollover Relief?

You can claim this by using the HMRC form HS290 and including it with your self-assessment tax return. However, if you are a client of DSR Tax Claims, you don’t need to worry about all that paperwork because our team of tax specialists will do all the hard work for you so that you don’t have to. This tax relief must be claimed within 4 years of the end of the tax year in which you bought the new asset (or the tax year in which you sold the old asset – if that happened after the purchase of the new asset).

Our team of experts at DSR Tax Claims are always on hand to help our client and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

The information contained within this page was correct on 31/01/2018, based on HMRC information obtained from https://www.gov.uk/browse/tax

We’re passionate about keeping our HMRC tax knowledge base updated with the latest HMRC legislation but in the event that you spot something that we need to update, please get in touch by emailing info@dsrtaxclaims.co.uk or calling us on 0115 795 0232.

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