HMRC’s “One-to-Many” Campaign Targeting Rollover Relief Claimants

HMRC’s latest “One-to-Many” campaign is targeting individuals who have utilised rollover relief for business assets in the tax year 2020/21.

What is Rollover Relief?

Rollover Relief is a method to defer gains from the sale of a qualifying business asset by reinvesting the proceeds into another qualifying business asset.

  • This deferral can be either partial or total, offering flexibility in asset replacement.
  • The replacement asset doesn’t have to be identical to the original, widening the scope for investment.
  • To qualify, the new asset must be purchased within a specified timeframe: one year before and three years following the sale of the original asset.

Provisional Claims: If finding a suitable replacement takes time, a provisional claim can be made at the time of sale. This provisional relief remains valid until a valid claim is made, typically upon acquiring the replacement asset.

  • The deadline for valid claims relating to gains from the 2020/21 tax year is 31 January 2025, prompting HMRC’s current outreach efforts.

Expect Correspondence: If you’ve made a provisional claim but haven’t confirmed it with a valid claim, expect a letter from HMRC.

  • Action Required: Upon receipt, confirm purchase intentions to HMRC or update them if plans have changed.

Consequences of Non-Confirmation: Failure to confirm may lead to HMRC assessing and recovering deferred tax along with interest, starting from 1 February 2022.

Extension Possibilities: If meeting the deadline is challenging but asset purchase remains on the agenda, HMRC may consider extension requests.

  • Conditions Outlined: Details outlining the conditions for such extensions will be provided in the correspondence.

For further insights and guidance follow the links below or get in contact.

Business Asset Rollover Relief – GOV.UK (