Taxation of Chargeable Gains Act 1992 section 248

Provisions supplementary to section 247

Section 248 sets out additional rules and restrictions that apply to roll-over relief on compulsory acquisition of land under section 247, particularly concerning replacement land that is or becomes a private residence.

• New replacement land that is a dwelling house (or part of one) is excluded from roll-over relief if all or part of a gain on its disposal would be exempt under the private residence relief rules at any point within six years of acquisition.
• If replacement land that initially qualified for roll-over relief becomes a private residence within six years, the relief is withdrawn and the chargeable gain on the original compulsory acquisition is recalculated, with no time limit on HMRC making the necessary tax adjustments.
• Where the replacement land is a depreciating asset (one with a predictable life of 60 years or less, such as a short lease), the gain is not rolled over into the base cost of the new asset but is instead held over and crystallises on certain future events, following the depreciating asset rules adapted for compulsory acquisition.
• A landowner cannot claim both roll-over relief under section 247 and the small part-disposal relief under section 243 in respect of the same disposal; only one relief may apply to a given transaction.