Partial rollover relief

[Muttsnutts]

As the title, can anyone explain in layman’s terms how this would apply in the following scenario,

Is it possible to sell a business ie farm/land and use the money generated to re investment only portion of the sale price into another farm/land or business and get relief on only the amount re invested and pay CGT on the remaining ?

Hope that makes sense.... TIA.

 

[teslacoils]

Yes.

 

[Muttsnutts]

As the title, can anyone explain in layman’s terms how this would apply in the following scenario,

Is it possible to sell a business ie farm/land and use the money generated to re investment only portion of the sale price into another farm/land or business and get relief on only the amount re invested and pay CGT on the remaining ?

Hope that makes sense.... TIA.

And are there any exceptions to the rule ?

 

[Frank-the-Wool]

In very simple terms the amount of money you receive from a sale less any possible reliefs can be used to roll over in eligible assets. If you do not invest the whole lot into eligible assets then the remaining balance is liable to CGT.

 

[Muttsnutts]

In very simple terms the amount of money you receive from a sale less any possible reliefs can be used to roll over in eligible assets. If you do not invest the whole lot into eligible assets then the remaining balance is liable to CGT.

Is there somewhere I can find a list of eligible assets to reinvest in ?

 

[chaffcutter]

Yes it’s all listed on the gov.uk website, just google Roll over relief and pick up the gov site

Aircraft qualify iirc!

 

[teslacoils]

Yes it’s all listed on the gov.uk website, just google Roll over relief and pick up the gov site

Aircraft qualify iirc!

Satellites too iirc. Oil tankers.

 

[Muttsnutts]

Yes it’s all listed on the gov.uk website, just google Roll over relief and pick up the gov site

Aircraft qualify iirc!

Assuming the new investment is to do with a new business venture ? .....not sure how I can incorporate an aircraft into a business

 

[chaffcutter]

Buy one and lease it to an operator?

holiday lets qualify too, but not all businesses do by a long way.

 

[Muttsnutts]

Does land let out under FBT rules still allow the use of partial rollover relief for that specific area of land if sold ? TIA.

 

[midlandslad]

Does land let out under FBT rules still allow the use of partial rollover relief for that specific area of land if sold ? TIA.

only applies to the proportion of the ownership period that you were farming the land, so if let for 10 years and farmed for 5 years, you would get rollover relief on 33% of the value

 

[Muttsnutts]

only applies to the proportion of the ownership period that you were farming the land, so if let for 10 years and farmed for 5 years, you would get rollover relief on 33% of the value

only applies to the proportion of the ownership period that you were farming the land, so if let for 10 years and farmed for 5 years, you would get rollover relief on 33% of the value

This may be a stupid question but where does the 33% come from

 

[chaffcutter]

5 yrs is 33% of the total ownership time of 15 years

 

[Muttsnutts]

5 yrs is 33% of the total ownership time of 15 years

Ah I c thank you