Question:
I sold my business in December 2012 for £148,500, and was intending to re-invest the proceeds within three years into a new business and use roll over relief for that amount. However, the new business venture fell through. I am in the process of completing an amendment self-assessment return for the 2012/13 tax year, but would like to clarify if I can only use one year's worth of annual exemption? I sold the business as a going concern and the full amount is claimable against entrepreneurs' relief.
Arthur Weller replies:
You are correct that only one year of capital gains tax annual exemption is available to you. However I suggest you speak to a tax adviser before you amend your tax return. Just because your new business venture fell through does not mean you cannot continue with your rollover relief claim. It depends on the nature of the new assets you invested in (wasting assets etc.), and what happened to the remaining assets after your new business venture ended.
