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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15973
Experience:  International tax
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Could you please let me know whether an individual can

Resolved Question:

Hi
Could you please let me know whether an individual can claim Business Asset Rollover Relief on an investment property?
Thanks
Kind regards
Paul
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Title to relief under is confined to persons carrying on a trade. The word trade is to be given the same meaning as it has for Income Tax purposes. Trade therefore includes activities such as farming and the commercial letting of furnished holiday accommodation.
You can claim relief if:
• you are trading
• you are carrying on a business of furnished holiday lettings
• you are occupying commercial woodlands and managing them
commercially to make a profit
• you are carrying on a profession, vocation, office or employment
• you are providing an asset to your personal company, or
• you have disposed of land by a compulsory purchase.
Holding an investment personally would not apply unfortunately.
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Customer: replied 2 years ago.

Sorry just one thing. Can an individual have the gain rolled over under a compulsory purchase order (HS290)?

Thanks

Paul

Expert:  TaxRobin replied 2 years ago.
Hi Paul
Yes there is relief under compulsory purchase order. But it does not assist property investors, even if they have no choice as to when (and to whom) they dispose of their property. It does not assist a trader who reinvests the sale proceeds in land which is held as an investment. If the land has been used for the purposes of the taxpayer's trade for only part of the period of ownership, the relief will be restricted under.
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