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Business owners who need to claim roll-over relief for the 2022/23 tax year are being reminded by HMRC that if they made a provisional claim for business asset roll-over relief in their self-assessment for that year and haven’t yet replaced it with a final claim, they need to do so.
Roll-over relief can be claimed by a taxpayer who is trading and where a qualifying asset is sold and a new qualifying asset is acquired within a set period. If a valid claim is made, then the payment of Capital Gains Tax (CGT) on the sale of the original asset can be deferred.
A provisional claim would be made if the taxpayer intended to buy the replacement asset, but has not yet done so by the time they need to claim roll-over relief, says the ICAEW. But once the asset is acquired, they need to replace the provisional claim with the final valid claim.
When is the deadline for claims?
The final deadline for these claims is January 31, 2027, and if the final valid claim isn’t made by this time, then HMRC will withdraw any provisional claim, which would mean CGT would need to be paid.
The letter being sent out to taxpayers now by HMRC shows how to make a valid final claim, including what information needs to be provided for the claim to be accepted by HMRC. You can use form HS290 to make the claim, and anyone who doesn’t intend to buy a qualifying asset before the January 31, 2027, deadline should contact HMRC now.
This will start the process of HMRCwithdrawing the provisional claim early, reducing the amount of interest youmay owe on any tax due. If you are intending to buy the asset either shortlybefore or soon after the January 31, 2027, deadline, then HMRC will consider “reasonabletime” to make the final claim, according to the ICAEW.
Let us help you
If you need help with roll-over relief, then please get in touch with us and we will do what we can to help you.