Extra Statutory Concessions
The House of Lords’ decision in “the Wilkinson case” in 2005 made clear that the scope of HM Revenue & Customs’ to operate Extra Statutory Concessions (ESCs) is not as wide as previously thought.
Now 16 ESCs are being introduced into law, with the promise of more to come. The 16 are set out in a draft Statutory Instrument (SI) which will be given legislative effect from 6 April 2009.
The list of ESC’s covered is as follows:
• A33: Lump sum retirement benefits: changes after 5 April 1980
• D03: Private residence exemption: periods of absence (a)
• D04: Private residence exemption: periods of absence (b)
• D06: Private residence exemption: separated couples
• D15: Relief for the replacement of business assets: unincorporated association
• D35: Employee trusts: transfer of assets to beneficiaries
• D37: Private residence exemption: relocation arrangements
• D51: Transfers of assets from a close company at undervalue
• F07: Foreign owned works of art
• F19: Decorations awarded for valour or gallant conduct exempt from Inheritance Tax
• Exemption of spirits-based flavourings and essences
• Travel and subsistence for self-employed
• Negligible value: cases involving earlier no gains/no loss
• National heritage sales by private treaty to museums
• Gas and oil allowances
• VAT: imported works of art and antiques