What Capital Gains Tax relief is there for the disposal of business assets?
In principle, you are liable to Capital Gains Tax in respect of any assets used in your business. However, if further business assets are purchased within one year before or three years after the sale, you can claim ‘rollover relief’ as a result of which the gain on the disposal is deducted from the cost of the new business assets acquired. Therefore, no tax is paid until the new business assets are sold, unless they too are replaced. For these assets to qualify they must either be land and buildings, fixed plant and machinery, milk and potato quota or other agricultural quotas. Please note that motor vehicles or any vehicle on wheels don’t qualify. Find out more about tax and your business.
In principle, you are liable to Capital Gains Tax in respect of any assets used in your business. However, if further business assets are purchased within one year before or three years after the sale, you can claim ‘rollover relief’ as a result of which the gain on the disposal is deducted from the cost of the new business assets acquired. Therefore, no tax is paid until the new business assets are sold, unless they too are replaced. For these assets to qualify they must either be land and buildings, fixed plant and machinery, milk and potato quota or other agricultural quotas. Please note that motor vehicles or any vehicle on wheels don’t qualify.
