Taxation of Chargeable Gains Act 1992 section 175

Replacement of business assets by members of a group

Section 175 extends business asset roll-over relief so that it can operate across a group of companies, treating all qualifying group trades as a single trade and allowing one group member to sell an old asset while another acquires the replacement.

• All trades carried on by members of a capital gains group that fall within the charge to UK corporation tax are treated as a single trade for roll-over relief purposes, covering UK-resident companies and UK permanent establishments of non-resident companies.
• Where one group company disposes of an old asset and a different group company acquires the replacement, roll-over relief under sections 152 and 153 can apply as if both companies were the same person, provided both meet UK residency or chargeable-asset conditions and both make a joint claim.
• A non-trading group company that holds assets used solely for the purposes of the group's combined trade is treated as if it were itself carrying on that trade, so it too can benefit from roll-over relief on disposals or acquisitions of those assets.
• Roll-over relief is blocked where the new asset is acquired by a group member under a no-gain/no-loss transfer (for example, an intra-group transfer under section 171), preventing so-called "rollaround" arrangements that would otherwise exploit the interaction of these reliefs.