Discovery assessment to correct invalid rollover claim

In November 2009 the taxpayer sold land under a compulsory purchase order. It sought to roll over the gain under TCGA 1992 s 247(1) when in April 2012 it reinvested the proceeds on the construction of buildings on land it already owned. HMRC refused the claim on the basis the taxpayer had not acquired new land. In May 2014 it opened an enquiry into the taxpayer’s corporation tax self assessment return and in October 2015 amended the return saying an assessment would be issued. 

In the meantime in a similar case CRC v Benham (Specialist Cars) Ltd the Upper Tribunal had ruled that an amendment was not suitable in such circumstances. HMRC therefore raised a discovery assessment in May 2018 based on a discovery made by a different officer that month. The taxpayer appealed.

The First-tier Tribunal referred to the Court...