Partial rollover relief

Is it possible?

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Client company sells a qualifying asset and reinvests all of the proceeds in a new qualifying asset. It has losses that it could use to reduce the gain, but not eliminate it. TCGA 1992 s152 does not seem to accommodate a partial rollover claim in these circumstances and colleagues agree with me (but are we right?)

However, my question relates to another, albeit hypothetical, situation. Company sells same first asset as above and reinvests only some of the proceeds in new asset, leaving part of the gain to be offset by losses. But what happens if company buys another qualifying asset within the 3-year time limit? Can they choose simply to make or not make a claim in respect of that second tranche of reinvestment or is the effect of s152 such that once a claim is made it will apply to all sums reinvested in the qualifying period (so that the original claim, and loss relief offset, would need to be amended)?

Thanks in advance

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By chicken farmer
16th Jun 2018 10:58

I agree that there is no facility for partial claims under either s. 152 or s. 153.

However in respect of the second situation you mention, a provisional claim under s. 153A might be useful - this effectively gives you a breathing space in which you can either withdraw the s.153A claim or make a formal claim under s. 152 or s. 153.

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By Marion Hayes
16th Jun 2018 15:05

A rollover claim is made per asset, not per year/period.
You cannot spend £100 on one asset and only rollover half - but you can spend £100 on two assets and only rollover one of them.
Loss relief I believe is applied last against whatever level of gain is remaining but there are different time limits for roll over claims and loss claims.

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