Business Relief (3)

Question 1

When may a gain be rolled over?

Answer 1

Where it arises on disposal of a business asset which is replaced

Question 2

Following conditions for rollover (trade carried)

Answer 2

Old asset sold and new asset bought are both used only in trade carried on by person claiming rollover relief

Question 3

Where part of a building is in non-trade use for all or a substantial part of the period of ownership?

Answer 3

Building is treated as two parts. The trade part (qualifying) and non-trade part (non-qualifying)

Question 4

Following conditions for rollover (old and new asset criteria)

Answer 4

Land and buildings occupied as well as used only for purpose of the trade

Fixed plant and machinery

Goodwill for individuals

Question 5

Following conditions for rollover (reinvestment of proceeds)

Answer 5

Reinvestment of proceeds received on disposal of old asset takes place in a period beginning one year before and ending three years after date of disposal

Question 6

Following conditions for rollover (acquisition)

Answer 6

The new asset is brought into use in the trade on its acquistion

Question 7

What is depreciating asset>

Answer 7

A depreciating asset within the next ten years will become a wasting asset. Plant and machinery is always treated as depreciating

Question 8

If a new asset is depreciating (what isn’r done)

Answer 8

Gain deferred is not deducted from cost of new asset

Question 9

If a new asset is depreciating (what is done)

Answer 9

Postpone until earleist of:
Disposal of new asset

Date new asset ceases to be used in trade

Ten years after new asset was acquired

Question 10

What is possible where a gain on disposal is deferred against a replacement depreciating asset?

Answer 10

Possible to transfer deferred gain to a non-depreciating asset provided non-depreciating asset is bought before deferred gain has crystalised