Q. In July 2011 I sold a property which had been used for my business. I planned to reinvest the proceeds in another property, but that acquisition never happened. I know I should now pay Capital Gains Tax on the gain made in July 2011. How do I go about doing that?

A. The period in which you should have reinvested the proceeds ran out in July 2014, so you do need to pay the CGT due for 2011/12 unless you get the tax inspector to agree to extend the period for reinvestment. He will only agree to an extension if you were prevented from reinvesting by circumstances beyond your control.

The disposal made in July 2011 should have been reported on your 2011/12 tax return as part of your provisional claim for roll-over relief. You should now write to the tax office to withdraw that provisional claim and declare the full taxable gain. The tax will be payable immediately and interest will run from 31 January 2013.