Replacement of business assets. When certain business assets are sold and the consideration is used to acquire a new business asset, roll-over relief may, at the election of the taxpayer, be available on any gain made on the disposal. The gain on the disposal is deemed to reduce the consideration for the acquisition of the new asset. When the new asset is sold, tax will be payable on the increased gain (subject to any available reliefs). The relief is only normally available if the replacement asset is purchased in the 12-month period preceding the disposal of the old asset or three years after, although HMRC has discretion to extend the period (sections 152-160, Taxation of Chargeable Gains Act 1992 (TCGA 1992)). See Practice note, Asset purchases: tax issues for buyer and seller: Business assets roll-over relief: chargeable gains.

Share for share exchanges. When shares or securities are exchanged for other shares or securities and certain conditions are met, the exchange is not treated as a disposal of the original shares or securities. For further discussion, see share for share exchange relief.