I have a client who owns a garden centre personally and he has let this to his own personal trading company.
He intends to sell the garden centre and also his shares in the trading company, at the same time, and would like to purchase a fishery using most of the proceeds. We are considering whether rollover relief under s.152 TCGA 92 is available.
The HMRC manuals and Simon's Taxes make it clear the old and the new asset should be used in the same personal trading company.
The legislation at s.157 TCGA (personal company) is unclear on the situation although I have to say it does not look like it intends to dissalow relief in our circumstance.
This is impossible if you have, in our case, sold the personal trading company shares. We could set up a new personal trading company but the strict interpretation seams to be that rollover relief is not available. Also, what if he runs the fishery as a sole trader?
Do readers have any experience with making claims in such circumstances? It seams unfair that you cannot make a claim.
Many thanks in anticipation of your replies.