Entrepreneurs' Relief means that any CGT is charged at a reduced rate, while claiming Rollover Relief
means that any tax due can be deferred if the owner is re-investing in another business asset, such as a new property.
Rum Jungle holds over 80% of Central shares meaning that scrip for scrip rollover relief
may be available for part of the capital gain1 made by Central Australian Phosphate shareholders accepting the offer.
Capital Gains Tax (CGT) reliefs - such as Business Asset Rollover Relief
, Entrepreneurs' Relief, relief for gifts of business assets and relief for loans to traders - can also apply, and profits count as earnings for pension purposes.
There are reinvestment reliefs, such as rollover relief
for property occupied for the purposes of a trade but they are unlikely to apply or be needed on the sale of investment property by a non-UK resident.
"There is no change either in Capital Gains Tax - to enable landlords to claim rollover relief
when buying and selling property - which is something the Residential Landlords Association has been campaigning for to help further stimulate the market."
He said there were allowances to employees in share schemes and "rollover relief
" to encourage people to reinvest money from selling businesses.
Holdover and rollover relief
is also available if the business being sold or transferred would also qualify.
The initial proposal was for a deferral relief, which would operate the same way as rollover relief
on the replacement of business assets.
"This case has relevance to a range of reliefs applicable to the rural sector including business property and agricultural property relief claims for inheritance tax, rollover relief
for capital gains tax, and entrepreneur's relief."
The Share Offer has also surpassed the 80% acceptance level, which is one of the prerequisites for tax rollover relief
for eligible accepting Aragon shareholders.