Capital gains tax (CGT)
Roll-over relief allows capital gains tax and corporation tax on chargeable gains to be deferred where the proceeds from disposing of certain eligible classes of qualifying asset are reinvested into new qualifying assets.
A new measure announced today will prevent companies claiming chargeable gains roll-over relief on the disposal of tangible assets where the proceeds are reinvested in an intangible fixed asset.
This measure also adjusts the tax cost of the replacement intangible fixed asset for claims made on or after 1 April 2009 and before 19 March 2014, preventing double tax relief being given on any roll-over relief claims already made.
A further measure, affecting farmers, including companies carrying on a farming business, who dispose of or acquire payment entitlements under the new agricultural subsidy Basic Payment Scheme (BPS), will include payment entitlements under the BPS within the classes of assets eligible for business asset roll-over relief.
This measure will be retrospective and have effect in relation to acquisitions and disposals of BPS payment entitlements on and after 20 December 2013 (the date the relevant EU Regulation came into force).
Inheritance tax (IHT)
Aimed at closing a loophole, a measure will amend the new rules introduced in Finance Act 2013 dealing with liabilities so that foreign currency accounts in UK banks are treated in a similar way as excluded property for the purposes of restricting the deduction of a liability.