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CAPITAL GAINS RELIEFS

RELIEF

WHO

CAN CLAIM

IN WHAT

CIRCUMSTANCES

ON WHICH

ASSETS

CONSEQUENCES

RESTRICTIONS

TIME LIMIT FOR CLAIMS

ENTREPRENEURS’ RELIEF INDIVIDUALS

SALE OF BUSINESS OR SHARES DISPOSAL OF THE WHOLE OR

PART OF A BUSINESS CARRIED
ON BY THE INDIVIDUAL OR
IN PARTNERSHIP.

ASSETS OF THE INDIVIDUAL’S
OR PARTNERSHIP’S TRADING
BUSINESS THAT HAS NOW
CEASED

SHARES IF THE INDIVIDUAL
OWNED AT LEAST 5% OF THE OSC
AND WAS AN EMPLOYEE OF THE
COMPANY.

ASSETS OWNED PRIVATELY AND
USED IN THE INDIVIDUALS
COMPANY OR PARTNERSHIP IF
THE INDIVIDUAL ALSO DISPOSES
OF ALL OR PART OF THEIR
PARTNERSHIP INTEREST/SHARES
AS PART OF THEIR WITHDRAWAL
OF INVOLVEMENT IN THE
PARTNERSHIP/COMPANY

THE FIRST £1M OF
QUALIFYING GAINS ARE
REDUCED BY 4/9

RELIEF GIVEN AFTER
OTHER RELIEFS(EXCEPT
EIS RELIEF) AND
ALLOWABLE LOSSES
(OTHER THAN ANY LOSSES
ON ASSETS THAT FORM
PART OF THE BUSINESS)

RELIEF IS GIVEN BEFORE
THE ANNUAL EXEMPTION

THE ASSET BEING
DISPOSED OF MUST
HAVE BEEN
OWNED IN THE 12 MONTHS PRIOR
TO THE DISPOSAL

IF THE DISPOSAL IS AN ASSET OF
THE INDIVIDUALS OR
PARTNERSHIPS TRADING
BUSINESS THAT HAS NOW CEASED
THE DISPOSAL MUST TAKE PLACE
WITHIN 3 YEARS OF THE
CESSATION OF THE TRADE

THE £1M LIMIT IS A LIFETIME
LIMIT WHICH IS REDUCED EACH
TIME A CLAIM FOR THE RELIEF IS
MADE

12 MONTHS FROM 31 JAN
NEXT FOLLOWING THE END
OF THE TAX TEAR IN WHICH
THE DISPOSAL IS MADE.

ROLLOVER RELIEF

INDIVIDUALS AND
COMPANIES

SALE AND REINVESTMENT OF
QUALIFYING ASSETS

LAND AND BUILDINGS

FIXED PLANT AND MACHINERY USED IN THE
TRADE

GOODWILL (INDIVIDUALS ONLY)
GOODWILL (UNINCORPOATED ONLY

FULL REINVESTMENT
OF PROCEEDS=ENTIRE
GAIN IS DEFERRED
INTO BASE COST
OF NEW ASSET.
PARTIAL REINVESTMENT OF
PROCEEDS
GAIN TAXED NOW=
PROCEEDS NOT REINVESTED
(LIMITED TO ORIGINAL GAIN)

NON BUSINESS USE-
ONLY ELIGIBLE
GAIN CONSIDERED

INDIVIDUALS:
4 YEARS FROM THE END OF
THE TAX YEAR IN WHICH THE DISPOSAL
OCCURRED

COMPANIES:
4 YEARS FROM
THE END OF THE ACCOUNTING
PERIOD IN WHICH THE DISPOSAL
OCCURRED

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HOLDOVER RELIEF

INDIVIDUALS AND
COMPANIES

SALE OF QUALIFYING ASSSETS
AND REINVESTMENT INTO
DEPRECIATING ASSETS

DEPRECIATING ASSETS=

FIXED PLANT & MACHINERY

LEASEHOLD PROPERTY WITH LESS THAN OR
EQUAL TO 60 YEARS REMAINING

GAIN IS HELDOVER UNTIL THE EARLIEST
OF:

SALE OF THE DEPRECIATING ASSET

CEASE TO USE IN TRADE

10YRS FROM ITS ACQUISITION

NON BUSINESS USE AS ABOVE

INDIVIDUALS:
4 YEARS FROM THE END OF
THE TAX YEAR IN WHICH THE DISPOSAL
OCCURRED

COMPANIES:
4 YEARS FROM
THE END OF THE ACCOUNTING
PERIOD IN WHICH THE DISPOSAL
OCCURRED

GIFT RELIEF

INDIVIDUALS

GIFT OR SALE AT UNDERVALE

ASSETS USED IN THE TRADE OF INDIVIDUAL,OR
IN THEIR PERSONAL COMPANY(AT LEAST 5%
HOLDING)

UNQUOTED SHARES

QUOTED SHARES (AT LEAST 5% HOLDING)

OUTRIGHT GIFT=ENTIRE GAIN IS
DEFERRED ONTO DONEE.

SALE AT UNDERVALUE-GAIN TAXED
NOW=
ACTUAL PROCEEDS ABOVE COST
ANY REMAINING GAIN DEFERRED ONTO
DONEE

RESTRICT FOR PERSONAL CO
SHARES

GAIN ELIGIBLE=CBA/CA

4 YEARS FROM THE END OF
THE TAX YEAR IN WHICH THE DISPOSAL
OCCURRED

INCORPORATION RELIEF

INDIVIDUALS

UNINCORPORATED BUSINESS
TRANSFERS TRADE AND
ASSETS TO COMPANY

ALL CHARGEABLE ASSETS

GAINS ON CHARGEABLE ASSETS ARE
DEFERRED UNTIL INDIVIDUAL SELLS
SHARES

IF NON SHARE CONSIDERATION

GAIN ELIGIBLE=

GAINXSHARE CONSIDERATION/
TOTALCONSIDERATION

AUTOMATIC IF CONDITIONS MET

TIME LIMIT TO DISAPPY IS 2 YEARS FROM
31 JANUARY FOLLOWING THE END OF
THE TAX YEAR IN WHICH THE BUSINESS
IS TRANSFERRED

PRINCIPAL PRIVATE
RESIDENCE RELIEF

INDIVIDUALS

SALE OF MAIN RESIDENCE

MAIN RESIDENCE INCLUDING HALF A HECTARE
OF LAND

GAIN FULLY EXEMPTED

PPR RESTRICTED IF PERIOD OF
ABSENCE EXCLUDING DEEMED
OCCUPATION)

AUTOMATIC

TIME LIMIT FOR DETERMINATION OF
PRINCIPAL PRIVATE RESIDENCE IS 2
YEARS FROM THE ACQUISITION OF THE
SECOND PROPERTY

LETTING RELIEF

INDIVIDUALS

RENTAL OF WHOLE OR PART OF
MAIN RESIDENCE

MAIN RESIDENCE

RELIEF LOWER OF:

PPR GIVEN

£40000

GAIN DUE TO LETTING

MUST HAVE BEEN MAIN
RESIDENCE AT SOME POINT IN
TIME

AUTOMATIC