UK Landlord Forum / Life

Dear All,

Can you please advise if a landlord can claim a rollover relief on capital gains on the sale of rental property?
Thank you.

Sorry,don't understand.Is this a reference to periodic tenancies ?

It's a tax thing, Heav. Basically, if you're in business and you have certain kinds of assets that you use in that business, and you sell them for more than they cost you, you can defer paying capital gains tax if you "roll over" the gain by reinvesting the proceeds in a new business asset, e.g you sell one factory and buy/build another.

To answer the original question, it doesn't apply to rental property, as far as I'm aware.

This rings a bell from when I looked into ways of reducing CGT.An accountant would be your best bet,but I think you had to immediately reinvest in order to qualify.

Thank you all.  Please refer to response below from HMRC:

HMRC View
Business Asset Rollover Relief is not claimable on the Chargeable Gain arising on the
disposal of the PROPERTY.

Reasons for HMRC View
To meet the conditions of the relief as set out at TCGA92/S152 (1) the assets sold and
purchased must be within the classes of assets listed in the Capital Gains Manual (CG)
CG60410.

In addition, TCGA92/S155 sets out the assets that qualify but only certain buildings qualify.
These qualifying buildings are as described at CG60990:-
Roll-over relief: land and buildings: let properties
Where land and buildings are let by the owner upon terms which give the tenant the right to occupy to
the exclusion of all others, they are not normally qualifying assets of the owner for the purposes
of the owner's trade.
Exceptions to this rule are:
 land and buildings let to a partnership by an acting partner, see CG61150+;
 land and buildings let to an individual's family or personal company, see CG61250;
 lessors of tied premises, see CG61010;
 lessors of furnished premises and caravan sites where the owner provides services in
circumstances which amount to trading by the owner, see PIM4300;
 commercial letting of furnished holiday accommodation, see CG61450+.
Where premises are let in circumstances such that the owner remains the legal occupier of the land or
buildings, a claim to relief is not prevented solely because there is also occupation by others.
Examples of such lettings are:
 a hotel or guest house (except any part not used exclusively for trade purposes, see
CG64660+);
 licensed premises owned and managed by a brewer, see CG61010;
 a house let to an employee who is required to occupy those premises (and no other) for the
proper or better performance of the duties of the employment, see SE11341+ or EIM11341+.

Please let me know if any of the above exceptions apply to the rental property that you sold
and let me have copies any documents to support your claim.

If none of the exceptions apply, please let me have your confirmation that your claim to
business asset roll over relief is now withdrawn and I will calculate the capital gains tax due,
subject to receipt of the information below.