Are there restrictions on the trade type for qualifying for rollover relief?

Rollover relief allows taxpayers to defer paying capital gains tax (CGT) when they dispose of a qualifying asset and use the proceeds to acquire a new asset. A key feature of rollover relief is its flexibility regarding the types of trades involved. The correct choice states that assets can be in different trades, which aligns with the provisions of rollover relief.

This means that if a taxpayer sells an asset used in one trade, they can acquire another asset used in a different trade and still qualify for the relief, provided that the other conditions for rollover relief are met, such as using all or part of the proceeds from the sale to purchase the new asset.

Other options suggest more restrictive conditions, such as requiring the new asset to be in the same trade, which is not accurate under the current tax provisions for rollover relief. Thus, assets being in different trades does not disqualify them from benefiting from rollover relief, making this choice the accurate reflection of the rules governing the relief.