To choose rollover relief, the demerger must be an eligible demerger. The head entity will usually advise you of this.
If you choose rollover relief:
- you disregard any capital gain or capital loss made under the demerger, and
- your new interests in the demerged entity are acquired on the date of the demerger. However, if a proportion of your original interests was acquired before 20 September 1985 (pre-CGT), the same proportion of your new interests in the demerged entity is treated as pre-CGT assets.
If you do not choose rollover relief:
- you cannot disregard any capital gain or capital loss made under the demerger, and
- all your new interests in the demerged entity are acquired on the date of the demerger.