Rollover Relief (CGT)
UK tax glossary · Last reviewed: April 2026
Business Asset Rollover Relief allows a trader to defer a CGT gain by reinvesting the sale proceeds into a new qualifying business asset (such as land, buildings, or fixed plant) within one year before or three years after the sale. The deferred gain reduces the base cost of the new asset.
The relief is only available on assets used in a trade — investment assets do not qualify. If only part of the proceeds are reinvested, the gain is deferred only to the extent of reinvestment; the remainder is immediately taxable.
The deferred gain becomes chargeable when the replacement asset is sold unless another rollover is made. Rollover Relief is particularly valuable for farmers and business property owners who reinvest regularly.
Worked example
Sell trading premises for £500,000 (original cost £200,000; gain £300,000). Buy new premises for £480,000 within 3 years. Partial reinvestment shortfall: £20,000 immediately taxable. £280,000 gain deferred; new premises' base cost: £480,000 − £280,000 = £200,000.
Common questions
Does Rollover Relief apply to furnished holiday lets?
FHL properties could previously qualify as trading assets for Rollover Relief. Following the abolition of the FHL regime from April 2025, this is no longer available for new disposals.
What assets qualify for Rollover Relief?
Land and buildings occupied and used for trade, fixed plant and machinery, ships, aircraft, hovercraft, satellites, spacecraft, and goodwill in certain circumstances.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.