CA 1993, 66 TC 380;  STC 50
The taxpayer purchased a building which, it was originally intended would be vacant, but the property was acquired subject to a sub-lease. Nine months later, the taxpayer acquired the sub-lease and assumed vacant possession of the property for use in its trade. The company claimed to roll-over an earlier capital gain against the acquisition on the grounds that it had taken possession of the property as soon as possible.
It was held that roll-over relief was not available on the grounds that the building was not used for the purposes of the trade straight away.