Taxation of Chargeable Gains Act 1992 section 198B

Ring fence reinvestment: part of consideration reinvested

Section 198B allows a person to claim rollover relief on a ring fence reinvestment where only part of the disposal proceeds are reinvested in new qualifying assets.

• Applies where a disposal and acquisition qualifies as a ring fence reinvestment and is eligible for partial rollover relief under section 153
• The person making the disposal and acquisition may make a claim under this section
• If a claim is made, the gain on the disposal is reduced by deducting the rolled-over amount, but the base cost of the new asset is not reduced accordingly
• Applies to disposals made on or after 22 April 2009