Taxation of Chargeable Gains Act 1992 section 247A

Provisional application of section 247

Section 247A allows a person whose land has been compulsorily acquired to claim provisional roll-over relief by declaring in their tax return that they intend to reinvest the proceeds in new land.

• When land is disposed of to an authority with compulsory purchase powers, the taxpayer can declare in their tax return that all or part of the sale proceeds will be used to buy replacement land
• While the declaration remains in effect, roll-over relief under section 247 applies automatically as though the replacement purchase had already been made and a formal claim submitted
• The provisional relief expires on a set date if the taxpayer has not made a formal roll-over relief claim or withdrawn the declaration — for CGT purposes, three years from 31 January following the tax year of disposal; for corporation tax purposes, four years from the end of the accounting period of disposal
• The replacement land must not fall within the categories excluded by section 248, and the acquisition must take place within the time limits that apply to business asset roll-over relief under section 152