Taxation of Chargeable Gains Act 1992 section 248A

Roll-over relief on disposal of joint interests in land: conditions

Section 248A sets out the five conditions (A to E) that must all be satisfied before roll-over relief can apply when joint owners of land swap their interests so that each ends up as sole owner of a distinct part or parcel of the land.

• The land must be jointly held by two or more persons, and the landowner must dispose of an interest in the joint holding to one or more co-owners in exchange for an interest in jointly held land, so that each party ends up as sole owner of a separate part or holding.
• The interest received (the acquired interest) must not be an interest in excluded land as defined in section 248C.
• Spouses or civil partners living together are treated as a single landowner or co-owner, and the relief also applies where the land is held through a partnership.
• Where all five conditions are met, the calculation of relief under section 248B applies, allowing the gain on the disposal to be rolled over into the cost of the land acquired.