Extra Statutory Concessions
The ‘Wilkinson’ decision by the House of Lords in 2005 clarified the scope of HMRC’s administrative discretion to make concessions that depart from the strict statutory position.
In order to ensure that Extra Statutory Concessions (ESCs) continue to have legal effect HMRC have been consulting with the profession over how best to give statutory backing to certain ESCs.
A further list of ESCs will be given legislative effect from 1 April 2010 following the Enactment of the Extra-Statutory Concessions Order 2010.
The list of seven ESCs which will be given legislative effect on this date concern:
- Accommodation outgoings of ministers of religion
- Discretionary payments by trustees
- Estimated Gift Aid donations by companies
- Income of contemplative communities or of their members
- Disposals of assets derived from larger holdings: valuation as at 31st March 1982
- Relief for exchanges of joint interests
- Compensation for deprivation of foreign assets
There will be further Orders in future to give other ESCs legislative effect. In the meantime all ESCs will continue to operate in their present form.