My property company rents offices to my other trading company. Both companies are personally owned by me. However I can see the need in a couple of years to acquire larger premises. What planning can I undertake to allow me to benefit from roll-over relief in the future?
Answer
TCGA 1992 s 152 sets out the qualifying conditions for roll-over relief. In particular these require a trading company to re-invest the proceeds on the disposal of a qualifying asset into a new qualifying asset. The new qualifying asset must be acquired either in the 12 months preceding or the three years after the original disposal (although this time limit can be extended in extenuating circumstances at the behest of HMRC). It should also be noted that for these purposes...
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My property company rents offices to my other trading company. Both companies are personally owned by me. However I can see the need in a couple of years to acquire larger premises. What planning can I undertake to allow me to benefit from roll-over relief in the future?
Answer
TCGA 1992 s 152 sets out the qualifying conditions for roll-over relief. In particular these require a trading company to re-invest the proceeds on the disposal of a qualifying asset into a new qualifying asset. The new qualifying asset must be acquired either in the 12 months preceding or the three years after the original disposal (although this time limit can be extended in extenuating circumstances at the behest of HMRC). It should also be noted that for these purposes...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
