Rollover relief and private use

Rollover relief and private use

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If an asset was disposed of and the proceeds reinvested in a FHL (which obviously is a qualifying asset), if the FHL subsequently becomes the individual's PPR, (say after a year),would the gain crystallise when the FHL is sold, say one year later?  I cannot see anything in the legislation which would prevent this, but maybe I am not looking hard enough.

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By KarenCCarr
10th Dec 2013 12:23

Is anyone able to help with this?  73 views and no replies?

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By johngroganjga
10th Dec 2013 12:50

Well it certainly crystallises when the replacement asset is sold. That is the whole point of hodover relief. Your question is whether it is any different because the replacement asset becomes the owner's PPR. My answer is that logically it shouldn't. As far as I know this is not an area where tax gives an illogical result.

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