Roll over relief available?

Roll over relief available?

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If a client who owns a commercial investment property (contains both shops and residential flats above the shops) were to sell the property could the proceeds be invested in another commercial property and thereby benefit from roll over?

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Replies (3)

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paddle steamer
By DJKL
16th Oct 2015 10:09

I doubt it as it appears

I doubt it as it appears the property is not used in a trade so does not qualify for rollover relief.

TCGA 1992 ,s152

If the consideration which a person carrying on a trade obtains for the disposal of, or of his interest in, assets (“the old assets”) used, and used only, for the purposes of the trade throughout the period of ownership is applied by him in acquiring other assets, or an interest in other assets (“the new assets”) which on the acquisition are taken into use, and used only, for the purposes of the trade, and the old assets and new assets are within the classes of assets listed in section 155, then the person carrying on the trade shall, on making a claim as respects the consideration which has been so applied, be treated for the purposes of this Act—

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By pawncob
16th Oct 2015 10:49

No

The clue is in the words "investment property", which are excluded from roll over.

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By Portia Nina Levin
16th Oct 2015 10:58

I disagree with pawncob. "Investment properties" are not excluded from ordinary rollover relief. As per the first post they simply are not included.

There are forms of rollover relief that might apply to interests in land, but they only apply in specific circumstances. The only one that might possibly apply to the OP though is if the reason for the sale is a compulsory purchase.

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