If you sold a business asset in 2022/23, deferred the tax by promising to reinvest, and haven't yet confirmed you did, HMRC is looking at you.
The rollover relief claim deadline for 2022/23 provisional claims is 31 January 2027. Miss it and HMRC cancels the deferral, the Capital Gains Tax (CGT) falls due, and interest is charged back to the original due date in February 2024.
This article explains how the rollover relief claim deadline applies to you and what to do before 31 January arrives. It does not cover the detailed reinvestment conditions for every asset class, which turn on your specific facts.
Key Takeaways
- According to Section 153A of the Taxation of Chargeable Gains Act (TCGA) 1992, taxpayers who made a provisional rollover relief claim in their 2022/23 Self Assessment Tax Return must acquire the replacement qualifying asset and amend the claim by 31 January 2027
- If the provisional claim is not finalised by 31 January 2027, the rollover relief is withdrawn and the deferred gain becomes chargeable for the original year of disposal, i.e., 2022/23; HMRC may also charge late payment interest on the additional Capital Gains Tax that becomes payable from the original due date for the tax
- According to HMRC's Helpsheet HS290, rollover relief is available only where qualifying business assets used for the purposes of a trade are replaced with other qualifying business assets; investment assets, including ordinary Buy-to-Let properties held to generate rental income, do not qualify because property letting is generally treated as an investment activity rather than a trade
- Although the Furnished Holiday Lettings (FHL) tax regime was abolished from 6 April 2025, disposals that took place before that date may still qualify under the former rules; as confirmed by HMRC, taxpayers with provisional rollover relief claims relating to those earlier disposals must still finalise them by the applicable statutory deadline
- HMRC explains in HS290 that taxpayers should amend or complete their rollover relief claim through their Self Assessment Tax Return or by writing to HMRC where appropriate
- The rollover relief claim deadline is set by law, and HMRC has no general discretion to extend the statutory time limit beyond the provisions contained in the legislation
What Did You Actually Claim Back in 2022/23?
If you made a provisional rollover relief claim in your 2022/23 Self Assessment Tax Return, you did not claim an immediate Capital Gains Tax (CGT) repayment. According to HMRC and Section 153A of TCGA 1992, you claimed the right to defer paying Capital Gains Tax on a gain because you intended to buy a qualifying replacement business asset within the statutory time limit.
According to TCGA 1992 s.152, Business Asset Rollover Relief allows a taxpayer to defer CGT when they dispose of a qualifying business asset and reinvest the proceeds in another qualifying business asset. Instead of paying tax immediately, the gain is deducted from the cost of the replacement asset and usually becomes chargeable only when that replacement asset is eventually disposed of.
According to TCGA 1992 s.153A, where the original asset is sold before the replacement asset is acquired, a taxpayer can make a provisional claim in their Self Assessment Tax Return. This allows the gain to be deferred while they complete the reinvestment within the statutory replacement period.
As explained in HMRC's Capital Gains Manual CG60310, provisional relief is obtained by declaring an intention to reinvest in the tax return rather than by making a formal claim at that stage. However, the provisional relief does not continue indefinitely. Once the replacement asset has been acquired, the taxpayer must finalise the claim within the statutory deadline or the deferred gain becomes chargeable.
When is the Rollover Relief Claim Deadline?
If you made a provisional rollover relief declaration in your 2022/23 Self Assessment Tax Return, you must finalise your claim by 31 January 2027. According to Section 153A of the TCGA 1992, this is the statutory deadline for replacing a provisional declaration with a full rollover relief claim where the return was filed by the normal filing deadline.
This is the deadline referred to in HMRC's reminder letters as well. It is set by legislation rather than HMRC policy, so missing it can result in your provisional relief being withdrawn and the deferred CGT becoming payable.
What Happens If You Miss The Rollover Relief Claim Deadline?
If you miss the rollover relief claim deadline, the provisional relief ceases to have effect and the deferred Capital Gains Tax becomes payable. According to Section 153A of the TCGA 1992, the gain is taxed for the original year in which the asset was disposed of, not the year in which the provisional relief expires.
This means that if you disposed of the original asset during the 2022/23 tax year, the gain is assessed using the CGT rules and rates that applied for 2022/23. According to HMRC, late payment interest is then charged on any additional tax due from the original payment date for that liability, which for most 2022/23 Self Assessment taxpayers is 1 February 2024. HMRC's late payment interest rate is 7.75% as of July 2026.
According to HMRC's capital gains manuals CG60300 and CG60310, HMRC has no discretion to extend the statutory period during which provisional relief remains effective. Requests for extra time simply because reinvestment is expected to happen shortly should be refused.
However, HMRC also explains that where a taxpayer has completed a qualifying reinvestment within the statutory replacement period, it may accept a formal rollover relief claim submitted shortly afterwards in limited circumstances if the taxpayer contacted HMRC before the statutory deadline. However, this administrative practice does not extend the legal deadline set out in TCGA 1992 s.153A, and taxpayers should not rely on it as an alternative to making their claim on time.
Does This Apply To My Property?
Usually not. According to HMRC, Business Asset Rollover Relief generally applies only to assets used for the purposes of a trade. Since ordinary residential Buy-to-Let letting is normally treated as an investment activity rather than a trading business, most landlords cannot claim rollover relief when selling a rental property.
As explained in HMRC's Capital Gains Manual CG60281, land or buildings let to tenants are not normally qualifying business assets because they are used and occupied by the tenant rather than by the owner in carrying on a trade. As a result, most standard Buy-to-Let properties do not qualify for Business Asset Rollover Relief.
There are limited exceptions though. Property used directly in a trading business, such as business premises occupied by the owner, certain farming businesses or other qualifying trades, may qualify. In addition, disposals of qualifying Furnished Holiday Let (FHL) properties made before 6 April 2025, when the FHL tax regime was abolished, may still give rise to valid rollover relief claims under the former rules.
The Trap for Furnished Holiday Let owners
This is where property owners must look twice. Until recently, FHLs were treated as a trade and qualified for rollover relief. However, the FHL regime was abolished from 6 April 2025 (1 April 2025 for Corporation Tax), removing that treatment for disposals or acquisitions on or after that date, as mentioned in para 13(2)(a), Sch 5, Finance Act 2025, and HMRC CG60287.
But if you sold a qualifying FHL asset before 6 April 2025 and made a provisional declaration in your 2022/23 return, you may still have a live claim, and HMRC accepts it stays valid where the gain is rolled into an asset used in an actual trade. A separate anti-forestalling rule in para 14, Sch 5 of the Finance Act 2025 can deny the relief where an unconditional contract was entered into before 6 April 2025 but completes on or after that date. The wording of your claim matters here.
Worked Example: The Guest-Owner Who Nearly Forgot
Alex runs a seaside guest house, which is a genuine trading business. In August 2022, she sold the freehold property and made a capital gain of £120,000. Because she intended to buy larger trading premises, she made a provisional rollover relief declaration in her 2022/23 Self Assessment Tax Return.
Planning delays meant Alex did not complete the purchase of her replacement property until 2024. Once the purchase was complete, she assumed everything had been dealt with and forgot that the provisional declaration still had to be replaced with a full rollover relief claim. It was only when HMRC sent a reminder letter that she realised the 31 January 2027 deadline was approaching.
If Alex finalises her claim before 31 January 2027, the £120,000 gain remains deferred. Instead of paying CGT now, the deferred gain is deducted from the base cost of her replacement guest house under TCGA 1992 s.152, so no immediate CGT becomes payable.
If she misses the deadline, the provisional relief ceases to have effect. The £120,000 gain becomes taxable for the 2022/23 tax year, not 2026/27.
Assuming Alex is a higher rate taxpayer and the entire gain is taxed at the 20% CGT rate that applied to qualifying business assets in 2022/23, her tax liability would be approximately:
£120,000 × 20% = £24,000
According to HMRC, late payment interest would also be charged on that unpaid tax from the original payment date for the liability, generally 1 February 2024 for a 2022/23 Self Assessment liability, until the tax is paid. As of 17 July 2026, HMRC's late payment interest rate is 7.75%, although the rate can change over time.
Thanks to HMRC's reminder, Alex was able to submit her full rollover relief claim in time, so the £120,000 gain remained deferred and no immediate CGT became payable.
How Do You Make the Final Rollover Relief Claim?
You normally make your final Business Asset Rollover Relief claim through your Self Assessment Tax Return. HMRC Helpsheet HS290 explains the qualifying conditions and how to complete the claim.
If you are claiming through your tax return, the Capital Gains Summary uses code ROR for a full rollover relief claim and code PRO for a provisional claim. According to HMRC Helpsheet HS290, if the claim is made outside a Self Assessment return, you can write to HMRC with the relevant details instead.
If you made a provisional declaration in your 2022/23 tax return, ensure the final claim is submitted before 31 January 2027. According to TCGA 1992 s.153A, missing this statutory deadline can result in the provisional relief being withdrawn and the deferred CGT becoming payable.
Conclusion
If HMRC has written to you, or you sold trading premises or a holiday let in 2022/23 and can't remember whether you finalised the claim, the safe move is to check now while you still have options. The difference between a clean claim and a withdrawn one is tens of thousands of pounds plus interest, and the fix takes minutes if you act before 31 January 2027. This is exactly the rollover relief claim deadline HMRC's letters are chasing.
Do you have more questions?
We have helped a lot of clients deal with rollover relief claims. So, if you have any questions or need any advice, feel free to reach out.
FAQs
The rollover relief claim deadline for a provisional claim made in a 2022/23 Self Assessment Tax Return is 31 January 2027. That is the third anniversary of the 31 January following the tax year of disposal, set by TCGA 1992 s.153A. HMRC withdraws the relief if you miss it.
HMRC cancels the provisional relief and assesses the original gain, taxed at the rates for the year of disposal. Interest accrues from the original due date of 1 February 2024 at HMRC's late-payment rate, currently 7.75%.
Generally, no. Rollover relief applies to assets used in a trade, and letting residential property is treated as an investment rather than a trade. Standard Buy-to-Lets and ordinary rental properties fall outside the relief, so most landlords will have no valid claim to finalise.
HS290 is the Self Assessment helpsheet for Business Asset Rollover Relief and is accompanied by an optional claim form. The helpsheet explains who qualifies for the relief, the claim time limits and how to complete a claim. The accompanying HS290 form can be used to make a full rollover relief claim or, where appropriate, to make a declaration for provisional relief. If you're claiming through Self Assessment, the form can be attached to your Capital Gains Summary SA108. If you're claiming outside a tax return, it can be sent to HMRC with the required supporting information.
No. HMRC's manual confirms it cannot extend the provisional relief period simply because it has expired. Where you have genuinely reinvested in a qualifying asset around the deadline, HMRC may allow a short period to submit the formal claim, but only if you contact them before 31 January 2027 to explain.
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