Taxes Consolidation Act 1997 section 600A

Replacement of qualifying premises

Section 600A provides capital gains tax "rollover" relief where a person disposes of qualifying residential rental property and reinvests the proceeds in replacement residential rental property, deferring the chargeable gain until the replacement property is itself disposed of.

• The relief applies to disposals of qualifying residential rental premises made before 4 December 2002, with a limited extension to 31 December 2003 where replacement premises were acquired before that date.
• The replacement premises must contain at least 3 residential units (or the same number as the qualifying premises, if greater), all properties must comply with Housing Regulations, and the replacement must not be acquired for resale at a profit.
• Full relief applies where all disposal proceeds are reinvested; partial relief applies where only part is reinvested, but only to the extent the gain exceeds the amount not reinvested.
• The replacement premises must be acquired (or an unconditional contract entered into) within the period beginning 1 year before and ending 3 years after the disposal, and apportionment rules apply where the premises was not a qualifying premises throughout the ownership period or where other assets form part of the consideration.