This week's opinion

One of the most intriguing aspects of the taxation system is that the mechanics of how the assessment and appeal system work are constantly producing surprises.

The whole saga of the way enquiries into loss carry backs for income tax are treated since CRC v Cotter [2013] STC 2480 is a case in point and a recent decision of the First-tier Tribunal – Benham (Specialist Cars) Ltd (TC5048) – has demonstrated another apparent hole in the fabric of the tax system.

We know that the reinvestment time limit for rollover relief is three years. So when a company submits a tax return it may not know whether it will incur qualifying expenditure within that limit. It can however make a declaration that it will incur qualifying expenditure and if it does the original gain is not taxed. If the company does not incur the expenditure...