The external envelope of steel framed industrial buildings normally involves the use of purlins and rails spanning between the main hot-rolled frames to support the roofing/cladding. These purlins are typically light-gauge cold-formed steel members of complex shape for which the thin-walled nature of the material means that local instabilities will significantly influence their structural behaviour. Economic design should be based on failure of the system, recognising the opportunity for redistribution of moments. This paper presents the findings from a numerical investigation of the degree of moment redistribution in continuous cold-formed steel beams subjected to a downward (gravity) uniformly distributed load (UDL). Three types of nonlinear finite element analysis were validated against previously reported physical tests: (i) continuous two-span beams subjected to a UDL, (ii) single span beams subjected to a central point load producing a moment gradient and (ii) single span beams subjected to two point loads producing a central region under pure bending. The interior support moments from the continuous beam models were compared against reference moment capacities from the three-point bending models. Based on various different section sizes, covering a range of cross-sectional slenderness, full moment redistribution with no drop-off in moment at the interior support was found to be possible only for stocky sections but not for slender sections. In the case of slender sections, local and distortional buckling caused a reduction in interior support moment prior to failure of the system. Hence a design formula is proposed to estimate the post-peak reduction of interior support moment from its initial peak, and this reduced moment capacity is then used in conjunction with the full span moment to determine the load-carrying capacity of the system. Comparisons show the proposed approach to offer accurate prediction of observed system failure loads.