Chapter 20 Rollover relief – further aspects

Question 1

20.1 Partial business use

Answer 1

Where the asset is partially used in the business, we treat the part used for business and the part used for non-business as separate assets. Rollover relief will be available on the business element of the gain, but the non-business element will be chargeable.
We must consider whether the replacement asset is being fully used for business purposes. Where the new asset is partly used for business, we look at the amount reinvested in the business element of the asset only, which will determine the amount of rollover relief available.