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Rollover relief on land already owned

Rollover relief from chargeable gains corporation tax could not be claimed for construction costs on land already owned as this was not "acquiring other land". However, in this case, the company won its case because the discovery by HMRC was stale.

The discovery assessment was issued on 23 May 2018 in respect of an accounting period ending on 31 August 2010.

There were three issues in dispute. The first was whether the assessment was valid. If it was not, there was no need to consider the other two issues.

On the facts of this case, the assessment was stale. There was correspondence with HMRC in 2014 and 2015 which showed that HMRC was aware of the facts then.

Although the substantive issue need not have been considered, the tribunal noted that law referred to property that came to be owned without acquiring it, usually by building it.

The case report can be downloaded from here.

Oriel Developments Ltd [2019] TC 7306 [19.08]