Rollover Relief

Rollover Relief

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one of my friend made capital gain by selling rental property which had mortgage. He intent to re-investment in another property . what would be the CGT and rollover relief situation.
ansar riaz

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By kumars
13th Feb 2007 08:32

rollover relief
You should consider the following before claiming any rollover relief -

Rollover relief is only available on business assets. The property sold is it a commercial property or residential property. Just by letting a residential property to individuals it does not become business property.

Again if rollover relief becomes available it must be claimed with in the specified time period.

Also you need to ensure that in order to claim the full rollover relief whole of the sale proceeds are reinvested in non depreciable assets. If your client invest is depreciable assets rollover relief is restricted.

Hope it helps.

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