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Rollover relief - assets used in partnership

Rollover relief - assets used in partnership

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As Rollover Relief is a personal claim, presumably the actual ownership of the asset is not important, provided that both the asset sold and new asset acquired are used in the partnership that individual is a member of?

My situation, - husband and wife jointly own land which is used exclusively in the farming partnership owned by them and their son.

The land is now being sold and the proceeds are to be wholly reinvested in milking machinery which will be bought in the name of the partnership.

Presumably assuming that the 1/3 cost of the milking machinery exceeds 50% of the proceeds of the land, the husband and wife will each be able to make full claims for Rollover Relief?

Please could someone confirm that I am reading this situation correctly?

Many thanks 

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By Tax Dragon
10th Oct 2019 08:57

SP D11 applies for s154 as it does for s152.

So, yes, I agree with you (but remember that 10-year rule).

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By chicken farmer
10th Oct 2019 10:35

Agree with Lion.

A couple of other points;
1. I am not entirely sure what is meant by 'milking machinery' but be sure that it is fixed (in the physical sense) see Head B of Class 1 of s.155.

2. Presumably the machinery is a wasting asset so bear in mind s. 154

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