Revenue Tax Briefing Issue 43, April 2001
Section 92 provides for capital gains tax rollover from 5 January 2001 in respect of certain investment property. This relief was previously only available in respect of assets of a trade. The property must be a residential property in respect of which the person is entitled to rent. It must contain at least three separate residential units and must comply with certain Housing Regulations. The relief provides that no capital gains tax is payable where the proceeds from the sale of the property are reinvested in another residential investment property which has at least the same number of separate residential units as the property which was sold. Instead, the gain is deferred until such time as the replacement premises is disposed of.
The same conditions which apply to the existing rollover relief for trading assets apply to the relief for investment property. The principal conditions are that the replacement property must be acquired in the period one year before and three years after the disposal of the original property. Partial relief is available where the property was not a “qualifying” property throughout the whole period of ownership by the person.