Reshma Johar explores a relatively less well-known form of capital gains tax relief.
A capital gains tax (CGT) rollover relief is potentially available when dealing with a ‘compulsory purchase order’ (CPO) of land. A CPO can only be made by central government, including public and local authorities.
The disposal falls within the CGT provisions if an authority is either exercising or holding compulsory powers.â¯
This form of CGT rollover relief will be available if the taxpayer reinvests either part of or the entire proceeds in acquiring the replacement new land. The conditions for the relief are broadly:
- The owner of the land has not advertised the land for sale. There is no timeframe for this, but in