by Asim Abbas
12 November 2026 
Selling business premises or machinery? How Rollover Relief delays Capital Gains Tax
Selling business premises or machinery? How Rollover Relief delays Capital Gains Tax
If you sell business premises or equipment at a gain and reinvest the money in new business assets, Rollover Relief can delay the Capital Gains Tax. It is one of the most useful reliefs for growing sole traders and partnerships.
- Rollover Relief delays Capital Gains Tax when you reinvest in new business assets.
- Buy the new assets up to 1 year before or 3 years after the sale.
- Qualifying assets include land, buildings and fixed plant or machinery.
- Partial reinvestment means partial relief.
- Claim on form HS290 with your tax return; provisional relief is available.
The timing window is generous, from one year before the sale to three years after, but the assets must be used only for trading.
This guide explains the rules, partial relief, depreciating assets and how to claim, with HMRC’s own date examples.
What is Rollover Relief?
According to GOV.UK, Business Asset Rollover Relief lets you delay Capital Gains Tax when you sell business assets and use the money to buy new ones, or to improve assets you already own. You pay no tax until you sell the new asset, when the original gain may then become due.
The conditions
- buy the new assets within 3 years after selling the old ones, or up to 1 year before
- your business must be trading when you sell the old assets and buy the new ones
- the old and new assets must be used only for trading
- qualifying assets include land and buildings and fixed plant or machinery
Partial relief
If you reinvest only part of the proceeds, or the old asset was only partly used for trading, you get relief on only part of the gain. The rest is taxed in the normal way.
Estimate the gain
Use our free Capital Gains Tax calculator before deciding how much to reinvest.
Depreciating assets
Fixed plant or machinery, and other assets expected to last less than 60 years, are treated differently. Relief on these can last for up to 10 years, after which the deferred gain becomes chargeable unless it has been moved onto a qualifying long-life asset.
How to claim
- complete form HS290 and include it with your Self Assessment return
- claim within 4 years of the end of the tax year in which you bought the new asset, or sold the old one if later
HMRC’s example: if you sell in May 2026 and buy in August 2028, you must claim by 5 April 2033.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Provisional relief
If you intend to reinvest but have not bought the new asset yet, you can claim provisional relief on the first part of HS290. It lasts up to three years from 31 January after the tax year of the sale. HMRC’s example: sell in May 2026, and provisional relief runs until 31 January 2031. When you buy, you complete the form again to confirm the claim. If you do not reinvest, the tax becomes due with interest.
What about limited companies?
Companies pay Corporation Tax on their gains rather than Capital Gains Tax, and have their own version of the relief. Our limited company accountants can advise. For the full picture, read Capital Gains Tax for businesses, and see Business Asset Disposal Relief if you are selling up rather than reinvesting.
What should I do next?
Within 1 year before to 3 years after the sale.
Both old and new assets must be used for trading.
Or claim provisional relief if you have not bought yet.
We work out full or partial relief and file the claim.
Frequently Asked Questions
How long do I have to reinvest?
Up to one year before or three years after selling the old asset.
Which assets qualify?
Land and buildings and fixed plant or machinery used only for trading, among others.
What if I reinvest only part of the money?
You get partial relief, and part of the gain is taxed.
How do I claim?
Using form HS290 with your Self Assessment return, within four years of the end of the relevant tax year.
Can I claim before buying the new asset?
Yes, as provisional relief, for up to three years from 31 January after the tax year of the sale.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
