Taxation of Chargeable Gains Act 1992 section 153

Assets only partly replaced

Section 153 deals with the situation where only part of the proceeds from disposing of a qualifying business asset are reinvested in new qualifying assets, and provides for a reduced (partial) roll-over relief.

• Full roll-over relief under section 152 is not available where only part of the disposal proceeds are reinvested in new qualifying assets.
• Partial relief applies where the amount not reinvested is less than the gain on disposal — the chargeable gain is reduced to the amount not reinvested, and the remainder is rolled over into the base cost of the new asset.
• The base cost of the new asset is reduced by the amount of the gain that is rolled over, so that the deferred gain is effectively preserved for a future disposal.
• The treatment of the other parties to the transactions involving the old or new assets is not affected by this relief.