Extra statutory concessions update
HMRC are consulting over a further 11 Extra Statutory Concessions (ESCs) which are likely to be given the force of law from April 2010. This follows an earlier exercise which saw 17 ESCs receiving legislative effect from April 2009. Comments on the consultation should be sent to HMRC by 7 October 2009.
The change in status of ESCs stems from the House of Lords’ decision in “the Wilkinson case” in 2005 which made clear that the scope of HM Revenue & Customs’ to operate ESCs is not as wide as previously thought.
The list of ESCs covered by this consultation are as follows:
- A61: Clergymen’s heating and lighting etc expenses
- A68: Payments out of a discretionary trust which are taxable as employment income
- B10: Income of contemplative communities or of their members
- B47: Furnished lettings of dwelling houses – wear and tear of furniture
- D26: Relief for exchanges of joint interests
- D44: Rebasing and indexation: shares derived from larger holdings held at 31 March 1982
- D50: Treatment of compensation
- Estimated Gift Aid donations by companies
- A61: Clergymen’s heating and lighting etc expenses; National Insurance element
- Zero rating of nurses’ prescriptions by pharmacists
- GP dispensing