Deadline nearing for those claiming roll-over relief in 2022/23

Business owners who need to claim roll-over relief for the 2022/23 tax year are being reminded by HMRC that if they made a provisional claim for business asset roll-over relief in their self-assessment for that year and haven’t yet replaced it with a final claim, they need to do so. Roll-over relief can be claimed by a taxpayer who is trading and where a qualifying asset is sold and a new qualifying asset is acquired within a set period. If a valid claim is made, then the payment of Capital Gains Tax (CGT) on the sale of the original asset can be deferred. A provisional claim would be made if the taxpayer intended to buy the replacement asset, but has not yet done so by the time the claim must be submitted. But once the asset is acquired, they need to replace the provisional claim with the final valid claim.

When is the deadline for claims?

The final deadline for these claims is January 31, 2027, and if the final valid claim isn’t made by this time, then HMRC will withdraw any provisional claim, which would mean CGT would need to be paid. The letter being sent out to taxpayers now by HMRC shows how to make a valid final claim, including what information needs to be provided for the claim to be accepted by HMRC. You can use form HS290 to make the claim, and anyone who doesn’t intend to buy a qualifying asset before the January 31, 2027, deadline should contact HMRC now. This will start the process of HMRC withdrawing the provisional claim early, reducing the amount of interest you may owe on any tax due. If you are intending to buy the asset either shortly before or soon after the January 31, 2027, deadline, then HMRC will consider “reasonable time” to make the final claim, according to the ICAEW.

Let us help you

If you need help with roll-over relief, then please get in touch with us and we will do what we can to help you. Disclaimer This article is intended as general guidance only and is based on UK tax legislation and HMRC guidance available at the time of publication. Eligibility for Business Asset Roll-over Relief depends on your individual circumstances and the nature of the assets involved. The information provided does not constitute tax advice, and professional advice should be sought before making any claim or relying on the information contained in this article.