Extra Statutory Concessions – new consultation document
In a 2005 House of Lords case (‘Wilkinson’), the Court held that HMRC must properly apply UK law and that Extra Statutory Concessions (ESCs) were ultra vires.
Since 2005 HMRC has been reviewing the implications of the Wilkinson decision in terms of the impact on HMRC’s ability to use a discretionary approach (such as the application of eESCs) even in cases where such an approach benefits taxpayers.
HMRC have recently published a fourth consultation document to ensure that the concessionary treatment of seven separate extra statutory concessions (ESCs) are successfully translated into draft legislation. Taxpayers can make comments on the consultation document to HMRC up to 7 March 2011. The Treasury Order giving effect to these ESCs is expected to be given legislative effect next year.
The consultation document concerns the following ESCs:
- 4.2 IPT: De minimis provisions – Insurance Premium Tax
- B11: Compensation for compulsory slaughter of animals – Income Tax & Corporation Tax
- C10: Groups of companies: arrangements – Corporation Tax
- C16: Dissolution of companies under S652 & S652A Companies Act 1985 – Corporation Tax
- Crematoria: sale of niches & memorials – Income Tax & Corporation Tax
- Payments for private use of a shared company car – Income Tax
- Seasonal caravan pitches – Value Added Tax