Corporation Tax Act 2009 section 761

Declaration of provisional entitlement to relief

Section 761 allows a company to claim reinvestment relief on a provisional basis when it realises an intangible fixed asset and intends to reinvest in other qualifying assets within the required time limit.

• A company can declare provisional entitlement to rollover relief in its tax return for the period in which the asset is realised, stating the expected relief amount
• While the declaration is in force, the rollover relief rules apply as though all the conditions for relief have been met
• The declaration ceases to have effect if it is withdrawn, superseded by an actual claim for relief, or if 4 years pass from the end of the accounting period of realisation
• When a declaration ceases to have effect, all necessary tax adjustments must be made, even if normal time limits for assessments or amendments have expired