Taxation of Chargeable Gains Act 1992 section 153A

Provisional application of sections 152 and 153

Section 153A allows a person carrying on a trade who disposes of qualifying business assets to obtain provisional rollover relief by declaring in their tax return an intention to reinvest the disposal proceeds in new qualifying business assets.

• A trader who disposes of business assets can declare in their tax return that all or part of the proceeds will be reinvested in new qualifying business assets, and rollover relief will apply provisionally as though the reinvestment had already taken place.
• The provisional relief ceases on the earlier of: the declaration being withdrawn, a formal rollover relief claim being made, or the expiry of the relevant deadline — which is the third anniversary of 31st January following the tax year of disposal for capital gains tax, or the fourth anniversary of the end of the accounting period for corporation tax.
• Once the declaration ceases to have effect, HMRC must make all necessary adjustments — including raising or amending assessments, or repaying tax — even if the normal time limits for doing so have expired.
• The declared amount of reinvestment can only be increased by amending the return within the amendment window; after that window closes, it can only be reduced or withdrawn entirely.