Taxation of Chargeable Gains Act 1992 section 248B

Calculation of relief

Section 248B sets out how to calculate the roll-over relief available when a landowner disposes of a joint interest in land and acquires another interest, provided the conditions in Section 248A are met.

• Where the disposal proceeds for the relinquished interest are equal to or less than the cost of the acquired interest, the landowner can claim full roll-over relief so that no gain or loss arises, with the base cost of the new interest reduced accordingly.
• Where the disposal proceeds exceed the cost of the acquired interest but the excess is less than the total gain, a partial roll-over applies — the gain is reduced to the amount of the excess, and the base cost of the new interest is reduced by the amount of gain rolled over.
• The relief does not affect the capital gains tax position of any co-owner of the land — it applies only to the landowner making the claim.
• The relief is subject to the excluded land rules in Section 248C, and where only part of the gain is chargeable (due to pre-6 April 1965 ownership), the base cost reduction is limited to the chargeable portion only.