Taxation of Chargeable Gains Act 1992 section 156

Assets of Class 1

Section 156 sets out the exceptions and special rules that apply to land and buildings (Head A of Class 1) when determining whether they qualify as relevant assets for roll-over relief purposes.

• Land and buildings used and occupied solely for trade purposes generally qualify for roll-over relief, but specific trades involving land dealing, land development, or providing services to land occupiers are excluded.
• Where a trade involves dealing in or developing land, any land held for the trade but whose sale would not generate a trading profit (i.e. it is not trading stock) is treated as falling outside the exclusion and can still qualify for roll-over relief.
• Tied premises (such as pubs tied to a brewery) are treated as both occupied and used for trade purposes where the relevant conditions under the income tax or corporation tax tied premises rules are met.
• Although land and buildings are treated as separate assets for roll-over relief, a building on leasehold land with 60 years or less remaining on the lease when the building is completed is classified as a depreciating asset.