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Other capital gains business asset reliefs

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance

Other capital gains business asset reliefs

Produced by Tolley in association with
Trusts and Inheritance Tax
Guidance
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This note deals with the following types of business asset reliefs:

  1. •

    rollover relief on replacement of business assets

  2. •

    incorporation relief

  3. •

    capital gains tax (CGT) deferral relief under the enterprise investment scheme (EIS)

  4. •

    CGT reliefs on company reconstructions

  5. •

    losses on loans to traders

So-called ‘business’ hold-over and business asset disposal relief, are dealt with in the Holdover relief for disposals by trustees and Business asset disposal relief ― trusts guidance notes.

Except where noted otherwise, these reliefs are available both to personal representatives and to trustees. For brevity, this note omits any further reference to personal representatives except where such reliefs specifically do not apply or are not available to them.

Rollover relief on replacement of business assets

Rollover relief enables the gain arising on the disposal of certain types of business assets to be deferred if other qualifying assets are acquired within the period commencing one year before and ending three years after the date of the disposal. HMRC may extend these

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Paul Davies
Paul Davies

Partner at DWF LLP


I am a partner in the private client department of DWF LLP, based in Manchester. I specialize in providing advice on tax and succession planning to high net worth individuals, executors and trustees. I will assist clients in the creation of wills and lasting powers of attorney and in the creation, restructuring, and dissolution of trusts and other wealth holding vehicles whether onshore or offshore. I often act as a professional executor and trustee..He has chaired the ICAEW's Employment Taxes & NIC Committee for many years and is a past chairman of the Institute's Tax Faculty. He is also a member of two relevant technical sub-committees of the CIOT.

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