Last updated: 14 October 2026
Can you roll over the gain when you sell a property and buy another?
Only if the property is used in a trade. Business asset rollover relief lets you defer CGT when you sell land or buildings used in your trading business and reinvest the proceeds in new qualifying business assets within 1 year before or 3 years after the sale. It doesn’t apply to ordinary buy-to-let properties, because letting isn’t a trade. Furnished holiday lettings used to qualify, but the special FHL rules were abolished from 6 April 2025, so new rollover claims into or out of holiday lets are no longer available.
Who can claim rollover relief
| Property use | Rollover relief? |
| Shop, workshop or office used in your own trade | Yes |
| Farmland and buildings used in a farming trade | Yes |
| Premises your personal trading company uses (as an individual owner) | Yes, if used by your personal company |
| Buy-to-let residential property | No |
| Commercial property let to tenants | No |
| Furnished holiday let (from April 2025) | No |
How rollover works
The gain on the old asset is deducted from the cost of the new one. You pay no CGT now, but the gain is taxed when you sell the new asset without reinvesting again. If you reinvest only part of the proceeds, the amount not reinvested is taxable straight away.
Example
Andrew sells his garage workshop, used in his car repair business, for £400,000, making a gain of £150,000. Within 2 years he buys larger premises for £450,000. He claims rollover relief, so no CGT is due now, and the base cost of the new premises becomes £300,000. If he had bought a property for £350,000, £50,000 of the gain would be taxable.
Options for landlords
- Incorporation relief: transferring a genuine property business to a company in return for shares can defer CGT (but SDLT applies)
- Private residence relief: if you’ve lived in the property
- Spreading sales: use each tax year’s £3,000 annual exempt amount and spouse transfers
- Gift hold-over relief: generally not available for let residential property
Rates and reporting
Residential property gains are taxed at 18% or 24% and must be reported and paid within 60 days of completion. Business asset disposal relief (14% from April 2025, 18% from April 2026) applies to qualifying business disposals, not investment properties.
Common mistakes
- Assuming rollover relief applies to buy-to-lets
- Reinvesting outside the 4-year window
- Not reinvesting the full proceeds
- Forgetting the 60-day CGT reporting deadline
Records to keep
Keep evidence of trading use, completion statements and the claim. Make the claim on your tax return or by letter within 4 years of the later of the end of the tax year of disposal or acquisition.
Frequently asked questions
Can I provisionally claim before buying?
Yes, on your tax return, if you intend to reinvest.
Is a 1031-style exchange possible in the UK?
No.
Does rollover work for companies?
Yes, for trading company assets.
Can a farmer reinvest in a house?
Only if the new property is a business asset used in the farming trade, such as farm buildings.
Related: whether to buy in a company, the FHL budget changes and the first £100,000 of a business sale.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with CGT on property sales. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
