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CGT 10% or 18%

CGT 10% or 18%

A claim to business asset roll-over relief was made on the 2007 Tax Return. CGT at 10% (after 75% business asset taper relief) was deferred.
The new asset now has a base cost of Nil. The new asset is now likely to be sold (post 06 April 2008) and CGT will be payable at 18%.
Can the 2007 Tax Return roll-over claim be withdrawn? If so, is this an amendment to the 2007 Tax Return and therefore must be done before 31 January 2009? Hmmmm, as I write this I can see a problem if we do not know prior to 31 Jan 2009 that the new asset is to be sold. There is of course a five year period for a roll-over claim to be made; could this apply to a withdrawal?
Gerald Lunn


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By yeboyye
22nd Jan 2009 14:04

CGT 10% or 18%
Many thanks for your reply. Apologies for not coming back to you sooner. No other comments made on the subject to date. Time is running out. I think I will have to take the "safer" option and assume that the Return amendment time limit will apply.

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14th Jan 2009 16:02

Do it before 31 January 2009 for certainty?

Of the top of my head I seem to remember there has been some debate relating to this point before, either in this forum or another.

TMA 1970 S42(9) provides for "supplementary" claims to be made within the time limit for the original claim where an "error or mistake has been made in the claim" but I think it must be doubtful that a change of mind would count as either an error or a mistake or that a withdrawal would count as supplementary.

Section 42(5) certainly envisages amendments to claims by way of an amendment to a return and it may be safer to assume that the time limit for amending the return expires when the time limit for amending the return expires unless you can find anything in the HMRC guidance that says otherwise.

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