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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I would like to ask about capital gains. When I sell my backpackers

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I would like to ask about capital gains.
When I sell my backpackers hostel and purchase a farm to run B&B, caravan/camping site and DIY livery stables would I have to pay any capital gains on the sale of the hostel?
Michael W Fletcher

Hello, if you have any questions or need further clarification after reading my answer please let me know.


Thank you for your question.


Based on information provided, you appear to be trading. You can claim business asset rollover relief. This lets you defer any capital gains tax due on the sale of hostel if you acquire another asset for your trade. The relief allows you to postpone paying tax until you dispose of those new assets. New assets have to cost the same as, or more than, the amount you got when you disposed of the old assets for full relief otherwise you may get partial relief.


You must acquire the new assets, or enter into an unconditional contract for the acquisition of the new assets, in the 12 months before, and 36 months after the disposal of the old assets.


More information on this can be found here - HMRC helpsheet 290


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