Specified Time Limits

The general rule under TCGA92/S152(3) is that the new asset must be acquired, or an unconditional contract for the acquisition of new assets must be entered into, in the period beginning twelve months prior to and ending three years after the date of disposal of the old asset.

The Board of HMRC have the power to extend these time limits and the approach taken in exercising this discretion is set out below.

Unconditional Contracts

TCGA92/S152 (4) provides for relief to be allowed on a provisional basis when an unconditional contract for the acquisition of qualifying new assets is entered into. Provisional relief should be reviewed in the light of the full facts (for example the use to which the asset is put on the acquisition). All necessary adjustments by making or amending assessments or by repayment or discharge of tax may then be made without regard to normal time limits.

In addition to provisional relief when there has been an unconditional contract you should be aware of the possibility of provisional relief before any contract for acquisition has been entered into, see CG60310.

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