A taxpayer carrying on a trade may claim rollover relief where a qualifying asset is sold and a new qualifying asset is acquired within a set period. Where a valid claim is made, the effect is that payment of the capital gains tax (CGT) due on the sale of the original asset is deferred.

The taxpayer can make a provisional claim if they intend to buy a qualifying asset but have not done so by the time they need to claim rollover relief. They must replace the provisional claim with a final (valid) claim once they buy the qualifying asset.  

Deadline for final claims 

HMRC is writing to taxpayers who made a provisional claim for rollover relief on the sale of an asset in 2022/23, and have not yet replaced the provisional claim with a valid claim.  

The time limit for making a valid claim is 31 January 2027. If a valid claim isn’t made before the deadline, HMRC will withdraw the provisional claim and the deferred CGT will become payable.  

Action required 

The letter explains how to make a valid claim, including the information that must be provided. Taxpayers have the option of using form HS290 to make their claim.  

Where the taxpayer has not bought, and does not intend to buy a qualifying asset by 31 January 2027, they should contact HMRC now. HMRC will then withdraw the provisional claim and send the taxpayer an assessment for any tax and interest they owe. Acting quickly will reduce the amount of interest payable.  

Late claims 

The letter also explains how HMRC will proceed where there is a short delay after the deadline in making the final claim because the new qualifying asset: 

• was bought shortly before 31 January 2027; or
• is bought soon after 31 January 2027. 

In these circumstances, HMRC will consider allowing the taxpayer “reasonable time” in which to make the claim, provided they contact HMRC before 31 January 2027 to inform them of the situation.