By when must a rollover relief claim be made?

Rollover relief allows a taxpayer to defer capital gains tax when they dispose of an asset and reinvest the proceeds in a replacement asset. The timing for making a rollover relief claim is crucial to ensure compliance with tax regulations.

The correct choice indicates that a claim for rollover relief must be made within the later of four years after the end of the tax year of the acquisition of the replacement asset or the end of the tax year of the disposal of the old asset. This means that taxpayers have flexibility in determining their claim deadline based on which event occurs later.

For example, if the old asset was disposed of earlier in the tax year than when the new asset was acquired, the claim would be based on the disposal date. This provision recognizes that taxpayers may complete transactions at different times, and it allows them a sufficient period to make their claim after both key transactions.

In contrast, choosing a fixed timeline based solely on either the acquisition of the replacement asset or the disposal of the old asset would not provide the necessary flexibility that this relief aims to offer—hence other options that do not consider the later event would be less accurate. This makes the correct choice the most comprehensive and accommodating interpretation of the claims process for rollover relief.