HMRC ‘can extend rollover relief limit’ for landowners hit by compulsory purchase

Jeremy Moody, secretary and adviser to the Central Association of Agricultural Valuers (CAAV).

Jeremy Moody, secretary and adviser to the Central Association of Agricultural Valuers (CAAV). - Credit: Archant

Landowners affected by compulsory purchase of assets may have longer to roll over the capital gain into other investments, the Central Association of Agricultural Valuers (CAAV) says.

HMRC, which was responding to queries from the CAAV, confirmed that it can agree to extend the time limit for rollover relief.

The relief allows landowners to defer payment of Capital Gains Tax (CGT) arising on disposal of an asset, by reinvesting the whole gain into other eligible assets, such as land.

“Under normal circumstances, rollover relief is available where replacement assets are acquired within a time window from 12 months before the disposal to three years afterwards,” said Jeremy Moody, secretary and adviser to the CAAV. “However, HMRC has the discretion to extend these limits, and experience suggests that it is commonly exercised helpfully.”